The United States Trustee is an officer of Justice who appoints a bankruptcy trustee to represent the estate of a debtor in bankruptcy proceedings. According to the U.S. Bankruptcy Law, bankruptcy trustees assess and make recommendations regarding various debtor demands.
A bankruptcy judge is a final authority to distribute assets. To take any action, a bankruptcy trustee must work with the bankruptcy judge. Without the approval of the court, the bankruptcy trustee can’t act.
Understanding The Bankruptcy Trustee’s Responsibilities
The type of bankruptcy proceeding a trustee is attending will affect the extent of their responsibilities. The action in a Chapter 7 bankruptcy proceeding is basically a liquidation. The trustee will oversee the liquidation of assets and distribute the proceeds to creditors.
A Chapter 11 proceeding allows the debtor, often a business owner to seek relief from bankruptcy and allow them to continue operating.
Chapter 13 is another type of bankruptcy. In order to repay certain debts, bankruptcy sufferers may wish to retain some assets.
What Is Chapter 7?
Chapter 7 of Title 11 U.S. bankruptcy code governs asset liquidation. A bankruptcy trustee is appointed to liquidate assets that are not exempt in order to pay creditors. 3
To file Chapter 7 bankruptcy, there are certain eligibility requirements. To file a Chapter 7 bankruptcy, a debtor must not have had any Chapter 7 bankruptcy discharged within the past eight years. A Bankruptcy means test is required. 4 Chapter 7 also has the name “straight” or “liquidation bankruptcy.”
What Is Chapter 11?
Chapter 11 bankruptcy is a type of bankruptcy that involves the reorganization and liquidation of debtors’ business, assets, and debts. Because Chapter 11 is named after the U.S. bankruptcy code 11, corporations are generally the ones that file for Chapter 11. This proceeding allows for more time (corporations need time for debt restructuring). A debtor can get a fresh start through Chapter 11, provided they fulfill their obligations under the restructuring plan.
Chapter 11 is the most complicated bankruptcy case and the most costly. A company should only consider restructuring after a thorough analysis of all options.
Chapter 13 And Restructuring Debts
Chapter 13 bankruptcy allows individuals who have a steady income to restructure their debts and repay them over time. The debtor is not seeking general forgiveness for their outstanding debts in such a plan. Instead, the debtor proposes a repayment plan that involves fixed installment payments.
Chapter 13 bankruptcy was formerly called a wage earner’s plan, as it only allowed individuals to receive relief under the chapter. The statutes that followed expanded the scope of Chapter 13 bankruptcy to include anyone, not just those who are self-employed or run an unincorporated company.
A bankruptcy lawyer in South Georgia can review your trust documents and advise you if the beneficial interest will survive bankruptcy. If I plan on filing bankruptcy, what should I do now?
Contact Our Office Today
Bruner Wright is the top-rated experienced bankruptcy lawyer in South Georgia and the Florida Panhandle. Our team has more than 30 years of experience helping people file Chapter 7 bankruptcy. Chapter 11 bankruptcy. Chapter 12 bankruptcy. Chapter 13 bankruptcy. Our practice has been very successful in helping people discharge their debts. We offer a personal service that is comprehensive and thorough in all aspects of our industry. We are responsive to the needs of our clients.
Our Service Areas
- Tallahassee Fl
- Douglas Ga
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Contact us today to schedule a consultation to find out if bankruptcy is the best option. A member of our team will review your case to help you make the right choice. We are focused on consumer bankruptcy. We want you to achieve financial stability.