CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What You Can Expect from the Bankruptcy Trustee During and After Bankruptcy

When you file for bankruptcy a trustee is assigned to your case. This person is not there to help you. As a matter of fact, the trustee’s main responsibility is to take money and assets from you and pass it along to your creditors. The more money that is taken for creditors the more the trustee gets in payment.

What does this mean if you’re filing for bankruptcy?

Understanding the Role of the Bankruptcy Trustee

It’s important to understand the role the trustee plays because many people assume the trustee is someone on their side during the process.

What the trustee does and doesn’t do depends on the chapter bankruptcy you choose, but you should never assume this person is working for you. They are not.

If you have no assets and you file for bankruptcy, the trustee’s job is to review the paperwork and facilitate the meeting of creditors. This is the time when creditors can dispute your claims and fight for the money they are owed. It can be an intimating phase of your bankruptcy, but your attorney attends with you and for most people, it concludes without incident.

After the meeting, the trustee submits a report to the court and the case moves forward. Soon after, your debts are discharged and your Chapter 7 bankruptcy is complete.

You can learn more about the meeting of creditors in this explanation from The Balance.

On the other hand, if you file for bankruptcy and you do have assets, the trustee’s job is to recover as many of them as possible. Any asset that is not exempted in your bankruptcy can be taken by the trustee, which is why it’s so important to work with an attorney who understands how and what to exempt.

It’s important to keep in mind that this asset recovery performed by the trustee isn’t necessarily concluded once your debts are discharged. In some cases, trustees have months or years to recover assets.

And as much as you’d like to run in the opposite direction of the trustee, you’re legally obligated to cooperate, provided the trustee is acting within the letter of the law. You must turn over important documents and any funds the trustee requests, as long as it’s legally required.

Trustees are Paid Out of the Money Recovered from You

One of the most important things to remember, especially if you feel like a bankruptcy trustee is working on your behalf, is that trustees earn their money based on what they recover from you.

In addition to a small portion of your bankruptcy filing fee, a trustee’s commission is a percentage of what they are able to distribute to your creditors. This amount varies from case to case based on the amount they recover, but the bottom line is they are going to work hard and hustle to get as much as possible for your creditors because a significant chunk of that goes into their pocket.

If you have questions about bankruptcy trustees or you are concerned nobody will be in your corner defending your rights during your bankruptcy, we can help. Contact the Law Office of Robert M. Geller at 813.254.5696.

Archive

Tampa Bankruptcy Law Blog

How Does Claiming Bankruptcy in Florida Affect Your Children?

Claiming Bankruptcy in Florida Understanding how claiming bankruptcy in Florida affects your children is an important part of determining whether...
Read More

Claiming Bankruptcy in Florida: What Happens When You File for Bankruptcy and Your Spouse Does Not?

Claiming Bankruptcy in Florida You already know how much the things you do affect your spouse when you are married....
Read More

Should You Pay Back What You Owe Loved Ones Before You File for Bankruptcy?

Florida Bankruptcy Laws It’s common for people who are struggling financially to turn to their friends and family for help....
Read More

Bankruptcy and Family Law: Does Filing Affect the Child Support I Pay or Receive?

Bankruptcy and Family Law If you’re like many people, the well-being of your children is your most important priority. Struggling...
Read More

5 Tips for Overcoming the Emotional Toll of Bankruptcy

Florida Bankruptcy Attorney Getting through the bankruptcy process is about more than just improving your finances. Working with a Florida...
Read More

Bankruptcy and Divorce: The Far-from-Perfect Storm

Bankruptcy and Family Law Bankruptcy and divorce separately are two of the most stressful events you can experience in your...
Read More

Does the Pandemic Have You in a Holding Pattern? Here’s How to Know When to File for COVID Bankruptcy

COVID Bankruptcy If you’re struggling to make ends meet and you feel as if your life is on hold because...
Read More

Will Your Favorite Retailer File for Business Bankruptcy in 2021?

Business Bankruptcy 2020 was a tumultuous year and many of the financial challenges caused by the pandemic are expected to...
Read More

Boosted and Extended Benefits Keeping Unemployed Afloat – But For How Long?

Unemployment Benefits Were you one of the millions of people who ended up out of a job and using unemployment...
Read More

Should Bankruptcy Laws Be Adjusted Because of COVID-19?

Bankruptcy Laws The COVID-19 pandemic brought a lot of changes throughout 2020 and many are expected to continue into 2021...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions