When you file for Chapter 7 bankruptcy, the trustee who oversees your case can make a tremendous impact. They are not only tasked with liquidating certain assets to pay your creditors, but they can also review your paperwork and investigate allegations of fraud. Understanding the role of a Chapter 7 bankruptcy trustee in Dallas can be helpful for anyone considering bankruptcy. Reach out to Allmand Law Firm, PLLC as soon as possible to learn how our compassionate Chapter 7 bankruptcy attorneys could help you.
What Does a Chapter 7 Trustee Do?
When you file for Chapter 7 bankruptcy in Dallas, the court appoints a trustee to oversee your case. The trustee plays a crucial role in ensuring the bankruptcy process is fair and complies with federal law.
Investigating Fraud
One of the trustee’s responsibilities is to investigate your financial disclosures for signs of fraud or misrepresentation. This includes reviewing your:
- Debts
- Income
- Transfers of property
- Recent financial activity
If the trustee suspects you have hidden assets or committed bankruptcy fraud, they may pursue legal action or refer the case to law enforcement.
Reviewing Assets
The trustee thoroughly reviews your list of assets to determine if anything is non-exempt and available for liquidation. While generous state exemptions enable most people in the city to keep their property, the trustee must still assess whether they can sell any assets to pay creditors. This includes checking property values and the accuracy of your exemption claims.
Paying Creditors
If the trustee identifies non-exempt property, they will sell it and distribute the proceeds to creditors in a specific order of priority. This process is designed to pay down some of your debts to creditors, though many of your assets are likely exempt from sale.
Litigating Disputes
Trustees may also be involved in legal disputes during the bankruptcy case. They can file lawsuits to recover improperly transferred property, challenge inaccurate exemption claims, or object to a debtor’s discharge if they discover misconduct.
If you have questions about the role of the trustee in your case, contact us today.
Can a Trustee Sell Any of Your Property?
The fortunate news is that trustees do not have unchecked authority to sell everything you own. In fact, many people in Dallas are able to complete the Chapter 7 bankruptcy process and secure a discharge without the trustee selling any of their possessions in the course of their duties. This is the case for a few reasons.
Large Assets
Many large assets, such as a home or a vehicle, are secured by a loan. If you have a car note, your lender has priority when it comes to the sale of your car, even under normal circumstances. While your vehicle could ultimately be repossessed, you have the opportunity to work with your creditor to catch up on your payments and keep the vehicle.
Exemptions
There are important exemptions to be aware of. For example, most people are allowed to keep things such as their clothes, family heirlooms, and home furnishings when they enter bankruptcy. A trustee will determine what property they can legally liquidate.
Your attorney could help ensure everything proceeds smoothly, and you retain everything you are entitled to keep.
Talk to Us About the Duties of a Chapter 7 Bankruptcy Trustee in Dallas
Filing for bankruptcy can be daunting and confusing. We are ready to answer your questions about the entire process, including the role of a Chapter 7 bankruptcy trustee in Dallas. Our 19 attorneys have the largest pool of bankruptcy knowledge in the state, and we are ready to protect your rights during this financial transition. Call Allmand Law Firm, PLLC, right away for a confidential consultation to discuss your options and get a clear understanding of the process that awaits you.
