| By :
Adrianna Noton
A bankruptcy trustee is one of the most important people you will work with through a debtors case. Most people have money problems at one point or another in their lives. When this happens, there are several options to consider before moving forward. One option is filing for legal and financial protection through the courts. The duties of a trustee are dependent upon the type of case set before them. They are often an attorney that is hired or appointed by the courts to handle the administrative functions of liquidation. They will be involved in reviewing your financial information, property records, and making decisions on selling property or exempting it from sale. The estate is the money and property of the person who is filing. There are cases where more than one person holds the property. In these cases, the trustee is involved in reviewing and dividing assets appropriately. His or her concern is to follow the laws and use available assets to pay creditors as much as the estate will be able to provide. There are two types of filings available for personal bankruptcy. Chapter seven is total liquidation of assets. Chapter thirteen involves a restructuring of the debt. In the latter filing, the debt may be reduced and restructured so the debtor can reasonably pay the creditors. In both cases, there are exemptions to what is included in the estate. These exemptions are not considered for sale or seizure to pay creditors. Debt settlement involves working with the creditors to pay the bills. Many people begin by calling and negotiating lower payments, reduced interest, and delays in due dates. This can escalate to a point where a final settlement is proposed. At the early stages, it is important to put all the bills together to get a good idea of where your money is going. This will help you make decisions regarding your ability to continue paying creditors. The consumer proposal is a final settlement negotiation procedure. This is a legal step taken to help the consumer put together a payment plan that can be met. Often a third party is involved and a single monthly payment is made. This payment is then distributed to the various creditors. Interest and fees may be suspended during this period. The final step of debt dissolution is bankruptcy. When all other steps have been tried, this one will finalize any outstanding debt. If total liquidation is chosen, the debts are no longer owed after the court has granted the liquidation. Chapter thirteen filings often take years to complete the payment plans. If they cannot be maintained, they can be forced into a chapter seven ruling. A bankruptcy trustee will become familiar with every aspect of your finances. In order to make the decisions needed before the liquidation or debt restructuring is granted, he or she will need to review all property, money, and income that will be included in the estate to solve your money problems. If Debt Settlement can be obtained through a consumer proposal, the damaging mark of bankruptcy can be avoided.
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