Redwood City Bankruptcy Attorney Talks About the Different Trustees
Redwood City Bankruptcy Attorney Talks About the Different Trustees
After a Debtor files for a Petition for Bankruptcy, the Debtor enters a legal world where any words, called "terms of art" are used. This is the lingo or slang that the Bankruptcy Court, bankruptcy attorneys, and everybody else in the bankruptcy world are using to describe a Bankruptcy case. Some of the common terms are Debtors, Creditors, Court, and Trustee. While Debtors and Creditors are fairly self explanatory, some of the others should be clarified. When referencing the Court, the user is referencing the Judge, the Court Staff, and the Court Clerk. Therefore when the Court makes an order, the reality is that Judge made the order. Or if the papers are filed with the Court, then the papers are probably submitted to the Court Clerk or part of the official file. Finally, if the Court will provide a translator that is probably the Court Staff setting up the logistics.
When referencing the "trustee," the Debtor should be aware that there are at least 3 different kinds of trustee. There is the Panel Trustee who has the job of administering the bankruptcy estate. (As a reminder, when a Debtor files for Bankruptcy, the government "takes over" the debtors assets which is now called the "bankruptcy estate.") The Panel Trustee is supposed to try and get as much money as possible from the bankruptcy estate to make sure that the creditors get what they can. The Panel Trustees are not paid by the Court but rather get paid from the filing fees or from a percentage of the money distributed to creditors.
The Standing Trustee is a title usually reserved for Chapter 13 and Chapter 12 bankruptcies. The Standing Trustee has the job of collecting the monthly payments from Debtors and paying out the creditors per the agreed upon repayment plan. The Standing Trustee does not get paid by the Court either but does collect a percentage of the money distributed.
Finally there is the US Trustee. These Trustee's are part of the Department of Justice and are separate from the Court. They main role is to be a watchdog in the bankruptcy proceedings. They are to monitor a bankruptcy, supervise the other trustess, and identifying fraud. In practice, the US Trustee will review all bankruptcy petitions, pleadings, and will participate in hearings if necessary. The US Trustee is the one most likely to bring a motion to dismiss a bankruptcy if they find any errors.
If you have a question regarding Trustees please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.
