Chapter 7 Bankruptcy

Every Chapter 7 bankruptcy case has a trustee appointed to in the beginning stages. The trustee plays a very important role in the bankruptcy case and is the one person, other than their attorney, that the filer will have the most contact with while they case is pending. A chapter 7 bankruptcy trustee has several jobs throughout the bankruptcy case. Initiating a Stay Creditors cannot contact bankruptcy filers to demand money from them once the case is filed. The trustee mails letters to every creditor the individual or couple filing for bankruptcy protection provides to let them know about the filing. The creditors are also invited to a meeting where they can ask their customer questions about their finances. Locating Assets A trustee must determine whether a filer has assets that can be liquidated. Ideally, the filer will state any assets they own on their court documents when they file their case. However, the trustee may have to do some research to determine whether t