Part of the bankruptcy process in Florida involves appointing a trustee. This is a person appointed by the bankruptcy judge. The trustee’s job is to manage your bankruptcy filing.
A trustee is a neutral party, meaning they do not act on your behalf or on behalf of your creditors. However, one of their duties is to look for any discrepancies or mistakes in your paperwork. You should always be honest about your financial situation because if the trustee uncovers evidence of fraud, your bankruptcy could be dismissed.
The trustee will review your bankruptcy paperwork and your financial records to identify any assets that can be used to pay your creditors. They will provide a recommendation on whether your case should proceed through the bankruptcy process and if so, continue to manage the process.
Meeting of creditors
The bankruptcy process involves a meeting with creditors. Your trustee is present at that meeting and any creditors may attend. At the meeting, the trustee reviews the asset and debt information and decides how much each creditor can be paid.
The trustee’s duties are slightly different depending on what type of bankruptcy you file.
A Chapter 7 bankruptcy involves using your assets to pay off debts, although many times you may keep some of your assets. If you file a Chapter 7 bankruptcy, the trustee looks for assets that can be used to pay off your debts.
A Chapter 13 bankruptcy involves paying off your debts with a three to five-year payment plan. In a Chapter 13 bankruptcy, a trustee reviews your income, collects payments and pays the creditors.
Working with your trustee
You will work closely with your trustee throughout the bankruptcy process. They will have many questions for you that you should be prepared to answer.
Preparing for your bankruptcy and working with a trustee can be challenging and sometimes feels overwhelming. Having assistance can be beneficial.
