A recent news item in the Baltimore Sun gives me the chance to paint a clearer picture of the kind of work a bankruptcy trustee does. True, the story is about a newspaper company, not someone filing individual bankruptcy in Indiana. Still, it sheds light on the job description of a trustee, so that readers of these Bankruptcy in Indiana articles can get a better handle on the way the system works.
“The new face in the office of the publisher of the Baltimore Jewish Times….is Zvi Guttman…who opened his laptop and began the work of a bankruptcy trustee, selling the business and searching for assets to pay creditors,” the feature story began.
When it comes to personal bankruptcy in Indiana, the trustee is typically a lawyer hired by the court. That is the person we Indiana attorneys for bankruptcy deal with on behalf of our clients.
The trustee will:
Review the bankruptcy petition and all the financial statements we turn in to the court
Chair the creditors’ meeting (once the trustee has given the debtor and the creditors a chance to comment on the bankruptcy petition and is satisfied that the information is correct, Stage One of the bankruptcy is complete)
Sell any assets (Let me remind you that it’s very rare for any of our clients who file bankruptcy Chapter 7 in Indiana to lose any assets)
Distribute funds to creditors
When clients file under Chapter 13 bankruptcy law, the trustee will collect each monthly payment, and then pay attorney fees and make payments to creditors
In other words, the bankruptcy trustee administers the process on behalf of the court. The court, in the case of clients of the Zuckerberg bankruptcy law offices, is the U.S. Bankruptcy Court of Indiana’s Southern Bankruptcy District.
Courts, of course, have judges. But almost always, as we Indiana bankruptcy lawyers represent our clients, it will be the bankruptcy trustee with whom we’re dealing.
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg