Chapter 7 Bankruptcy Attorney Seattle

Role of the Case Trustee

(206) 789-8751 sGoogle+ AVVO Facebook LinkedIn
Law Offices of Mark McClure
1200 Westlake Ave N #1006, Seattle, WA 98109
Free Consultation
Name *
Email *
Phone *
How can we help you?
Anti-spam :: 4 + 3 = *

Role of the Case Trustee

When there is a file for a petition for chapter 7, a U.S. trustee chooses the case trustee that is impartial to have the case administered and have the debtor's assets that are nonexempt liquidated. If the assets of the debtor are subject to liens that are valid or the assets are exempt, a trustee will usually file a report that is "no asset" with a court, and thus there won't be any distribution to creditors that are unsecured. Most of the cases of chapter 7 that involve individual debtors are cases that are the kind that are no asset.

However, in the case that the case looks to be one that is an "asset" at the start, creditors that are unsecured have to court file the claim in 90 days or less after a meeting of creditors' first date is set. However, the governmental unit has up to 180 days to file a claim from a date a case is to be filed. Because there won't be any distribution, in a typical case of chapter 7 of no asset, there isn't a necessity for a creditor to have to file claim proofs. If later, the trustee gets the assets to be distributed to creditors that are unsecured, the Court of Bankruptcy will give a creditor a notice and the court will give extra filing time to claim proofs.

Even though a creditor that is secured doesn't have to file the claim proof in a case of chapter 7 to keep its lien or security interest, other reasons could exist to have a claim filed. In a case that is chapter 7, a creditor who has liens on the property of the debtor may want to find an attorney for consult for advice.

The commencement of a case of bankruptcy makes an "estate." The estate becomes the legal owner (temporarily) of all the property of the debtor. It includes all equitable or legal interests of the property of the debtor as of the case's commencement, including property held or owned by some other person if the debtor has property interests. Generally, the creditors of the debtor are paid with property of the estate that is nonexempt.

The most important role of a trustee of chapter 7 in an asset case is to liquidate the nonexempt assets of the debtor in a way that has the return maximized to the debtor's unsecured creditors. The trustee attains this by having the property of the debtor sold if it is clear and free of liens or if it's worth is more than any lien or security interest attributed to that property and any debtor exemption that the debtor has in that property. The trustee can also try to recover property or money under the "avoiding powers" of the trustee. The avoiding powers of the trustee involve the ability to: set transfers that are preferential aside that are made to creditors in 90 days or less not after the petition; have interests of security undone and other prepetition property transfers that weren't perfected properly under the law of non-bankruptcy during the petition time; and go after claims of non-bankruptcy such as conveyance that is fraudulent and remedies of bulk transfers that are accessible under state law. Also, if business is the debtor, the court of bankruptcy may allow the trustee to keep the business operating for a period of limited time, if such an operation benefits creditors and boosts the estate liquidation.

Section 726 describes the estate property distribution. There are six claim classes in this section; and all classes must be fully paid before the next class that is lower gets paid. The debtor is paid only if all of the other claims classes were fully paid. The debtor is not interested in the disposition of the trustee of the assets of the estate, barring respect to debt payment which is not, in the case of bankruptcy, dischargeable. The primary concerns of the individual debtor in a case of chapter 7 are to keep property that is exempt and to get a discharge from all the debts possible.

Chapter 7 Background Chapter 7 Background
A Chapter 7 bankruptcy enables individuals to use assests to pay off your debt. Your home may be excempt
Chapter 7 Eligibility Chapter 7 Eligibility
Any individual, partnership, corporation or other business entity is eligible whether solvent or insolvent
How Chapter 7 Works How a Chapter 7 Bankruptcy Works
A Chapter 7 is a liquidation of assets to pay debt. If you have no assets, then your debt is forgiven
Chapter 7 Discharge Chapter 7 Discharge
A discharge releases you from personal liability for most debts and prevents any collection actions

© 2014 Law Office of Mark McClure ★ info@chapter7seattle.netChapter 7 Seattle
1200 Westlake Ave N #1006, Seattle, WA 98109 ★ Phone: (206) 789-8751
Phoenix Web Design