A Bankruptcy Trustee is appointed in each Chapter 7 and Chapter 13 bankruptcy case here in Sacramento. Read on for more information about who these people are and the job they do.
Sacramento Chapter 7 Bankruptcy Trustees
At the start of a Chapter 7 bankruptcy in Sacramento, the court automatically assigns a Trustee. The Trustee is picked from a list that the United States Trustee maintains. Each assignment is random. You never know which Trustee will be picked for a case.
Chapter 7 Trustees are there to administer the bankruptcy case. This means that they review the court paperwork, conduct a Meeting of Creditors, and collect property (if appropriate) from the debtor.
Your creditors can object to the appointment of the Chapter 7 Trustee. Your creditors can also elect their own trustee. However, this is very rare in a typical consumer bankruptcy in Sacramento.
Most consumer bankruptcy cases do not require the Trustee to collect assets. In these no-asset cases, the Trustee completes their administration of the bankruptcy case within a few months. Most Chapter 7 cases last between 90 and 120 days.
Sacramento Chapter 13 Bankruptcy Trustees
The job of Chapter 13 Trustees in Sacramento is much different. And there are only two Chapter 13 Trustees in Sacramento at this time.
Chapter 13 Trustees oversee your entire Chapter 13 case from start to finish. Most Chapter 13 cases last anywhere from three to five years. This means that a Chapter 13 Trustee is doing a lot more work than a Chapter 7 Trustee.
Chapter 13 Trustees collect your monthly Chapter 13 payment. They are required to distribute your money to your creditors in accordance with your Chapter 13 plan.
If you fall behind on your Chapter 13 payments, the Trustee will notify the bankruptcy court. The Trustee can ask the court to dismiss your bankruptcy case if you do not keep up with your payments.
My law firm helps people in the Sacramento area get help with their finances. We handle both Chapter 7 and Chapter 13 cases. Please call us at (916) 333-2222 to discuss whether bankruptcy is right for you.