Bankruptcy Trustee – after filing for bankruptcy, the bankruptcy court exercises control over your property and debts by appointing an official called a bankruptcy “trustee” to mange your case. Your bankruptcy trustee’s name and contact information will be in the official notice of filing you receive in the mail several days after you file your bankruptcy petition. The bankruptcy Trustee will examine your bankruptcy petition and other documents to make sure they are complete and look for property to sell for the benefits of your creditors. The bankruptcy trustee’s primary job is to see that your creditors get paid as much as possible. The bankruptcy Trustee is mostly interest in what you own and what property you claim as exempt from the bankruptcy, but will also look at your financial transaction during the previous year.
The Bankruptcy Trustee MUST BE NOTIFIED immediately if the following happens: You receive or become entitled to receive property that belongs in your bankruptcy estate within 180 days of filing your bankruptcy OR you realize you failed to list some of your nonexempt property in your bankruptcy petition. For example, you receive an inheritance, a divorce settlement or proceeds of a like insurance policy, or personal injury claim.
Bankruptcy Trustee’s receive a flat fee per chapter 7 or chapter 13 bankruptcy case they handle and the bankruptcy Trustee’s are entitled to a percentage of the funds the bankruptcy trustee distributes to the debtor’s creditors.
A word of caution, if the trustee believes you intentionally left property out of your petition, the trustee can get your case reopened and attempt to cancel your discharge. It is very important to list all your property in your petition and notify the trustee if you receive additional property or discover an error.