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The bankruptcy trustee and Chapter 7

Many Tennessee residents are in debt and searching for solutions. A Chapter 7 bankruptcy is one option for people who are facing credit card debt, medical bills and other consumer debt. When completed, a Chapter 7 bankruptcy can discharge people's debt and give them a fresh financial start.

Each chapter of bankruptcy is treated a little differently by bankruptcy courts, a Chapter 7 bankruptcy is a liquidation bankruptcy. This means that property of the debtor is taken and sold to pay down creditors before a discharge is granted. The process can be technical and time consuming, depending on the number of assets in each case. Under the bankruptcy code, a trustee is therefore assigned to a case. A trustee helps to oversee the bankruptcy process. The trustee's job will change depending on the type of bankruptcy.

In a Chapter 7 bankruptcy, the trustee has several responsibilities. First, the trustee is responsible for collecting the debtor's property. This is the non-exempt property that is to be sold during the bankruptcy proceedings. Then, the trustee is responsible for selling the property that has been placed in the bankruptcy estate. Once the property has been sold and the proceeds have been collected, the trustee is then responsible for distributing the money to the creditors.

In addition to liquidating property, the trustee is also responsible for making challenges during the bankruptcy proceedings. The trustee can challenge certain creditor's claims and challenge a discharge, under the right circumstances.

The duties of the trustee is just one of the many areas that can be confusing for Tennessee residents. People who want more information about Chapter 7 and if it is right for them, should see a qualified legal professional.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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