A New York Bankruptcy Trustee is an attorney appointed by Court the who will oversee your bankruptcy case. In addition to thoroughly reviewing your paperwork, the Trustee will also ensure that your creditors are paid as much you can afford. Your Trustee also has the right to challenge your case should any discrepancies arise.
New York Chapter 7 Bankruptcy Trustee
When you file for a Chapter 7 bankruptcy, the Trustee is responsible for assessing the value of your non-exempt property that can be sold to pay creditors. In the majority of Chapter 7 bankruptcy cases, the Trustee finds that there are no assets to administer and creditors are informed not to file claims as there is no property to be sold in order to pay them.
New York Chapter 13 Bankruptcy Trustee
In a Chapter 13 bankruptcy filing, The New York Bankruptcy Trustee is responsible for ensuring that your Chapter 13 bankruptcy proposed payment plan meets the legal requirements, as well as to receive your monthly payments and ensure that it is distributed among your creditors. The New York Bankruptcy Trustee also has the authority to monitor your tax returns.
How Does New York Bankruptcy Trustee Deal With Fraud?
If your New York Bankruptcy Trustee detects any bankruptcy fraud but lacks sufficient evidence to bring it to the attention of the Court, the Trustee has the right to exercise the Bankruptcy Rule 2004 Examination. The Bankruptcy Rule 2004 Examinations authorizes the Trustee to conduct a thorough analysis of:
- the property, conduct, liabilities or the the financial condition of the debtor.
- any matter that may impact the administration process of the bankruptcy estate.
- any matter that may influence or hinder the debtor’s right to a discharge.
Upon gathering sufficient evidence to support a bankruptcy fraud case, the Trustee can file a lawsuit against the defaulting party. In most cases, the lawsuit is filed in bankruptcy court and is known as an adversary proceeding.