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The Role of Bankruptcy Trustees in the Process

While filing for bankruptcy, you must know that the bankruptcy trustees have a substantial role in the court. The judge will make the last decision, but the bankruptcy trustees will take action. A bankruptcy trustee is an officer whom the United States assigns as a negotiator between the debtor and the creditor. 

Orlando has especially had many helpful lawyers who can help you understand the part of a bankruptcy trustee in a bankruptcy case. Consider seeking assistance from the best bankruptcy attorney fromBenenati Law Firm

  1. Understanding what a bankruptcy trustee is.

Before understanding the role of the bankruptcy trustee, you must first understand what a bankruptcy trustee is. Bankruptcy trustees are officers from the justice department. They represent the debtor’s estate and are appointed mediators in bankruptcy cases. They make sure that none of the bankruptcy laws are overlooked. However, they cannot act without the court’s approval.

  1. Managing bankruptcy estates

One of the most important roles that bankruptcy trustees play is supervising the bankruptcy estate. That includes access to all the assets of the debtors, accounting for the value of the assets, make sure that the assets are allocated to the creditors according to bankruptcy law. However, they have to make sure that all the creditors get their claims fairly.

  1. Investigating the debtor’s financial records

Sometimes, many debtors try to conceal their assets so that they can save some of the assets. A bankruptcy trustee makes sure that they conduct a thorough investigation of the debtor’s financial records. They examine all the financial affairs of the debtors, including income statements and bank statements. They even interrogate the debtors about their financial records. This will help them make sure that all the assets are disclosed and prevent any fraud. 

  1. Processing the bankruptcy case 

A bankruptcy trustee makes sure that they go through an investigation of the debtor’s assets; after accounting for the value of all the assets, the bankruptcy trustee makes sure that they schedule a meeting between the creditors and debtors. As the debtors and creditors are assembled, the bankruptcy trustee starts stating the laws for debtors and creditors and makes sure that everyone is informed about the obligations.

  1. Resolving the disputes between creditors and debtors

Bankruptcy trustees are appointed as mediators. Hence, they also make sure that there are no disputes or arguments between the debtors and creditors. Bankruptcy trustees try to negotiate and settle down on the fair outcome of the mediation. 

Seek professional guidance from bankruptcy lawyers in Orlando!

If you are going through bankruptcy and have made up your mind that you are filing for bankruptcy, make sure that you seek professional guidance with your bankruptcy attorney and discuss all your queries regarding bankruptcy trustees.

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