The Trustee’s Role in a Utah Bankruptcy
Trustees and the Bankruptcy Process
When filing for bankruptcy in Utah, a person is technically placing nearly all the property he owns and the debt owed in the hands of the bankruptcy court. The court acts through what is call a trustee. As long as a person’s bankruptcy case is open, he cannot do anything with property he owns without the consent of the trustee. Under a few exceptions though, those who have filed for bankruptcy can do what they wish with property they acquire and income they earn after filing for bankruptcy. They can even borrow money after filing even though getting into more debt probably isn’t wise or possible.
What does a Trustee do in Utah?
A trustee is a court appointed official that manages a bankruptcy case. Appointing a trustee is how a bankruptcy court exercises control over an individual’s property. A trustee’s contact information will be in the official notice of filing after a Utah bankruptcy attorney files a bankruptcy petition. The trustee’s primary duty is make sure a petitioner’s creditors are paid as much as possible of the debt they are owed. The trustee evaluates a petitioner’s property to determine what can be sold for the benefit of the bankrupt individual’s creditors.
The trustee is very interested in what the debtor owns and what the debtor claims as exempt property. The trustee’s main focus is on exempt and nonexempt property so he can better determine what can be sold to satisfy debts. He will also look at financial transactions during the previous year in hopes of freeing up more assets that can be distributed to creditors. The more assets the trustee recovers for the creditors, the more the trustee is paid. A court will sometimes appoint full time trustees to handle cases while other times it will appoint trustees on a rotating basis from a panel of Utah bankruptcy lawyers. Regardless of what type of trustee is appointed, they have the same responsibilities.
Trustee Questions? A Utah Bankruptcy Attorney Can Help
Bankruptcies can be very complex and working with the trustee can be difficult so if you are considering filing for bankruptcy, call a Utah bankruptcy attorney from Salcido Law Firm. A Salcido Law Firm lawyer will file your bankruptcy petition and work with the trustee so you don’t have to worry about any legal matters. Call 801.413.1753 for your free consultation with a Utah bankruptcy attorney today.