So you're considering bankruptcy, and doing your research online. You realize that in a chapter 7 bankruptcy some of your property could be subject to liquidation. You also learn that there are certain exemptions that allow some of your property to be protected from liquidation.
Common Belief About Bankruptcy Exemptions
Most people in their research come to the conclusion that a bankruptcy exemption must cover the entire value of their property to protect it. This is inaccurate.
Showing posts with label bankruptcy trustee. Show all posts
Showing posts with label bankruptcy trustee. Show all posts
Wednesday, April 27, 2011
Meet Your Bankruptcy Trustee
Whether you are filing for a simple chapter 7 bankruptcy or a more complex chapter 13 case, you will need to meet and interact with the bankruptcy trustee. The trustee assigned to your case is simply an attorney retained by the court to administer bankruptcy cases and ensure the creditors rights are protected. To give you a better understanding of what to expect from the bankruptcy trustee, you need to understand his/her financial motivations.
How the Bankruptcy Trustee is Compensated
The trustee is paid a small flat hourly rate to administer bankruptcy cases for the court. To make up for the rather small amount of fixed payment, he or she is also given a percentage of funds distributed to creditors involved in the case. This means the trustee is out to ensure creditors get money to which they are entitled in bankruptcy, and not necessarily looking out for your best interests.
How the Bankruptcy Trustee is Compensated
The trustee is paid a small flat hourly rate to administer bankruptcy cases for the court. To make up for the rather small amount of fixed payment, he or she is also given a percentage of funds distributed to creditors involved in the case. This means the trustee is out to ensure creditors get money to which they are entitled in bankruptcy, and not necessarily looking out for your best interests.
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