Bankruptcy Attorneys in Des Moines Protect Clients During Asset Liquidation

Posted By : Phineas Gray , on Jul, 2014

 

 

In Chapter 7 bankruptcy, some debts are eliminated (discharged). When someone files this type of bankruptcy, the court appoints a trustee to act as a go-between for the creditor and the debtor. In some cases, a creditor appoints the trustee. In this brief guide, Bankruptcy Attorneys in Des Moines will explain what a Chapter 7 bankruptcy trustee does during a case.

Actions Performed by a Chapter 7 Trustee

As mentioned above, some debts are discharged during a Chapter 7 case. Trustees must take the following steps:

  • Review the filer’s petition and claims
  • Question the filer under oath
  • Supervise the liquidation of some assets, with proceeds going to creditors
  • Monitor security interests and transfers

In short, the trustee’s role is to assist in the liquidation of assets to satisfy a person’s debts. They oversee the cataloging, classification and sale of assets, and then they manage the proceeds of the sale and distribute them to creditors. Bankruptcy Attorneys in Des Moines can help to protect your interests during the liquidation phase of the case.

Can a Trustee be Held Responsible for Violations of Bankruptcy Law?

A bankruptcy trustee is subject to stringent guidelines. For example, all transactions and sales must be made with reasonable business judgment, and proceeds of those sales must be handled carefully. Trustees cannot put money from liquidated assets in personal accounts -; all money must go into an account created expressly for that reason.

If a Chapter 7 trustee violates a law, they are held liable for losses sustained by lenders and creditors. A common violation occurs when a trustee uses funds from asset sales for their own purposes; in some cases, criminal prosecution can result from this type of violation.

Do I Need to Hire Bankruptcy Attorneys in Des Moines for Assistance with Chapter 7?

Most Chapter 7 bankruptcy cases are complex, involving many different laws and stipulations. You should consider hiring an attorney if you need assistance with your case. A lawyer can explain how your state’s laws work, and they can explain a trustee’s role in your case. Bankruptcy Attorneys in Des Moines will also be there to help if you need help in filing a claim arising from a trustee issue.

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