Who’s Who in in Chapter 7 Bankruptcy Proceedings

When filing for bankruptcy, there are many questions debtors face and a slew of people who become quite familiar with your personal financial matters. Before getting too far into the process, it can be comforting to know who some of these people are and what their responsibilities will be.

• The debtor: That’s you, the individual who owes money to others and is seeking bankruptcy to address the debt.
• The United States trustee: This is an official working within the Department of Justice who oversees the administration of bankruptcy cases in the quest to ensure efficiency, compliance, and integrity. In addition to monitoring for abuse and/or fraud, this individual appoints private trustees who are tasked with overseeing bankruptcies across 21 regions and over 80 field offices.
• Interim and permanent trustees: This person works with specific cases to evaluate the debtor’s property and dispose of it in order to get the funding necessary to pay toward the debt to all secured creditors. The trustee will determine whether sentimental items are worth more to the debtor or to the creditors. Additionally, the case trustee will preside over the 341 meeting for the debtor. There, the debtor will meet with creditors and be asked to answer questions under oath. Finally, the trustee is responsible for examining the schedules, petition, and financial records to make sure everything is in order. Notably, the trustee is an advocate for neither the debtor or the creditors and is tasked with managing the estate fairly.
• Secured creditors: This is a lender whose loan has been backed with collateral, meaning that if the debtor defaults, the secured creditor may seize the collateral property and sell it to recover the loss.
• Unsecured creditors: These are parties who are owed money, but whose loans have not been secured with collateral, including credit cards, medical debt, and utilities, for example. In a bankruptcy filing, they are the last to be paid.
• Bankruptcy administrator: This person is tasked with updating a list of local approved financial education providers and credit counseling agencies.
• Counsel for interested parties: Creditors often have attorneys representing their interests in bankruptcy proceedings.
• Bankruptcy judge: The judge in bankruptcy court is a federally appointed individual serving a 14-year term that is renewable, and who holds hearings, issues orders, and presides over the case. Oftentimes the debtor never has direct contact with the bankruptcy judge.

Your Advocate

The experienced Miami bankruptcy attorneys at The Law Office of Julia Kefalinos will walk you through your bankruptcy procedures with as little stress as possible. Our goal is to make sure you understand exactly what to expect. To discuss, schedule a confidential consultation in our Miami office today.