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Chapter 7
Chapter 7 Trustee
Immediately after the order for relief, the United States trustee appoints a disinterested member of the panel of private trustees to serve as the interim trustee in a Chapter 7 case: Bankruptcy code §701(a)(1). Then, either a trustee is elected at the section 341 meeting of creditors or the interim trustee automatically becomes the permanent trustee in the case. Bankruptcy Code §702.Duties of Trustee
In a Chapter 7 bankruptcy case, the trustee's primary responsibilities are to locate and collect property of the estate; to convert the property to cash; to make distributions to claimants in the order established by the Bankruptcy Code and to close the estate expeditiously: Bankruptcy code §704(1). Additional administrative duties of the Chapter 7 trustee are described in Bankruptcy Code section 704.Operation of Debtors Business
Authority to Operate Debtor's Business: Occasionally, the bankruptcy trustee may receive authorization from the court to operate the debtor's business temporarily, under circumstances where continuing the business for a while is in the best interest of the estate and will assist in its orderly liquidation. Such a situation may arise where an attempt is being made to sell the bankruptcy debtor's business as a going concern or where completing the manufacture of unfinished commodities is likely to result in a substantially greater liquidation price.Chapter 7 Meeting of Creditors
Meeting of Creditors: Within twenty to forty days after the
order for
relief, the United States trustee convenes and presides at the section
341
meeting, where creditors often participate in many of the following
matters:
Bankruptcy code §341(a).
Purpose of meeting
Examination of the bankruptcy debtor, under oath, by creditors, the trustee or
an examiner in the case, or the United States trustee: Bankruptcy code §343];
Creditor Election of Trustee
The election of a trustee, when requested by a sufficient number of unsecured creditors [B.C. §702]Election of a creditors' committee, when desired, consisting of between three and eleven unsecured creditors, to act in an advisory role in consultation with the trustee. Discussion about the trustee's abandonment of properly that is burdensome or of inconsequential value to the estate under the Bankruptcy code;
Discussion about an individual debtor's redemption of tangible personal property intended primarily for consumer use: Bankruptcy code §722, and, Discussion about the debtor's reaffirmation of particular debts: Bankruptcy code §524(c).
Consumer Cases
The duties of the Trustee in a Chapter 7 consumer bankruptcy are quite a bit different. The trustee must examine the debtor on her budget to determine whether budgetary expenses are necessary or un-necessary and make a referral to the US Attorney where the bankruptcy debtor has excessive or extravagant expense claims. A debtors ability to fund a repayment plan under Chapter 13 is a primary consideration in a consumer bankruptcy. Generally, the trustee must find that an individual debtor would have $100.00 or month or less of left over income, after payment of necessary secured debt, and other statutorily allowable expenses for the household, after debtors Chapter 7 bankruptcy discharge.
The trustee must also attempt to ascertain whether the debtor has been truthful on her schedules and disclosed all of her assets, her debts and any transfers of assets within the last six years.
Where the debtor has non-exempt assets and has filed a chapter 7 case, the trustee must make a decision whether to administer (liquidate) the asset for the benefit of creditors. The bankruptcy trustee may abandon property that is burdensome or of inconsequential value to the bankruptcy estate.
The trustee must examine the bankruptcy debtors claimed exemptions and make a determination whether debtors attorney has made an improper claim of exemption. If such a determination is made, the matter is brought before the bankruptcy court Judge who will make a decision who is right. The result is not always what you might expect.
The trustee must also attempt to ascertain whether the debtor has any anticipated changes in income with one year after the filing that would allow the debtor to fund a Chapter 13 bankruptcy repayment plan.
Riverside California
Riverside is the County seat of Riverside County, California. The city is named for the nearby Santa Ana River and the birthplace of the California citrus industry. As of 2006, Riverside had an estimated population of 305,255.
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