The law requires the person filing to cooperate with the trustee in the administration of a Chapter 7 case, including the collection by the trustee of the person’s nonexempt property. If the person does not cooperate with the trustee, the Chapter 7 case may be dismissed and the person’s debts will not be discharged.
Duties of a Bankruptcy Trustee
In a Chapter 7 case, a bankruptcy trustee will:
- Collect all of a debtor's nonexempt property
- Sell the bankruptcy estate's property
- Distribute the proceeds from the sale of the property to the creditors
- Challenge creditors' claims, if appropriate
- Object to a bankruptcy discharge, if suitable grounds exist
At least 7 days before the meeting of creditors, you must give the trustee and any requesting creditors copies of your most recent federal income tax returns. The trustee may also request additional information or documentation regarding your income and assets. You are legally required to provide this information in a timely fashion. Failing to cooperate is considered contrary to the purpose and spirit of the bankruptcy code.
The Value of Legal Representation
It is important to keep in mind that the bankruptcy trustee does not represent the interests of the person filing for bankruptcy. He or she represents the creditors. If you have questions or concerns, you need an experienced bankruptcy attorney who can advocate for your interests.
At Steffens Law Office, we understand that financial difficulties can happen to anyone. If you're drowning in debt and believe bankruptcy can provide the fresh start you need, we can help. Contact us today to schedule a case review.