The """"trustee"""" administers the bankruptcy case. The """"trustee"""" is not a judge.
One of the trustee's responsibilities is to conduct a """"First Meeting of Creditors"""" (also known as a ""341 meeting""). This meeting or hearing is scheduled approximately 30 days after you file for bankruptcy. The trustee assigned to your case will be at the hearing and is required to ask you a series of questions. The majority of these questions have already been discussed.
Do you still reside at the address you provided when you filed?
Did you accurately identify all of your assets and liabilities?
You were being garnished when you filed, correct?
In the past two years, have you transferred any assets or property to a family member?
Did you pay a single creditor over $600 in the 90 days prior to filing?
The trustee's inquiries are not intended to cause you harm; rather, they are designed to aid in the administration of your case.
The trustee is required to review all of your assets and determine if any of the assets are not exempt. This means that the trustee is determining if he must take the asset, sell the asset, and use the proceeds to pay creditors. Consider a client who owns a speed boat that is worth $10,000.00. Boats are not exempt unless the boat is used for business purposes.
The trustee does have some discretion as to whether he takes an asset or doesn't take an asset. An example that we see many times a month is the situation of """"extra"""" cars. Consider a car that doesn't run, has body problems, and is most likely worth less than the repairs that would be needed to make it road worthy. Usually we value a car like this at salvage value but most likely never more than $300.00. We almost never want to claim the car as exempt because we would rather use the exemption for a more valuable vehicle if the client has one. Keep in mind what the trustee would have to do with a non-exempt $300.00 car. The bankruptcy trustee would be required to liquidate the car (sell the car); take the proceeds from the sale of the car; first pay the expenses from the sale of the car (tow fee, auction fee, etc.); and take the remaining balance and distribute it among the clients' creditors. In reality it is more complicated than what I just explained and can take many months to complete. Good news! To do all that work the trustee would be paid something like 10% of the gross ($30.00). The trustees work hard for a living, however, they don't work stupid. There is no value in doing all the work and distributing less than $100.00 to the creditors. More plainly stated, trustees will likely abandon a car in this condition and the client will get to keep the car.
Everyone who files for bankruptcy receives a trustee who administers the case. The trustees in our area are really nice guys who have always helped me when I've asked. You don't need to be afraid of the trustee when you see them at your 341 meeting; they'd probably rather be at their offices doing productive work.
This concludes the description of the bankruptcy trustee and his or her duties. If you have any concerns about bankruptcy or the trustee's duties, please consult a local bankruptcy attorney." - https://www.affordablecebu.com/
