The role of a bankruptcy trustee

Law Offices of Mitchell Reed Sussman & Associates
Los Angeles Real Estate Attorney

There are a lot of people who are interested in what a bankruptcy trustee does, is the work done by the trustee going to benefit them or is the work done by the trustee going to be against the best interests that they have in mind.

The simple answer to this is that the trustee is neither a friend nor a foe; the job of the trustee is primarily to ensure that the laws of bankruptcy are followed and protected. The primary interest of the trustee is to ensure that the laws are not misused by those who are savvy with the laws. This means that someone who applies for bankruptcy cannot attempt to hide assets from the court. While it is their responsibility to declare all assets so that they can receive protection from the court regarding those assets, there are also people who fail to declare all assets, with the hope of leaving them out of the proceedings.

One of the jobs of a trustee is to locate any and all assets of the debtor who has applied for bankruptcy, and any assets that are recovered are also included into the list. Such information helps the court come to a decision on the type of bankruptcy the applicant is eligible to apply for, and the best course of action to resolve the problem.

There are cases where people do try to conceal assets and it is the primary aim of the bankruptcy trustee to find such assets. It would not reflect well on the applicant if any such assets are discovered by a trustee. It is also the job of any bankruptcy trustee to find the assets of any and all applicants, and there are certain standard procedures that they follow.

The primary interest of the court is to find the best option and provide the user with some of the best options that are available to repay the creditors. This means that the court would redirect the trustee to take stock of all the assets and value them, also in certain cases arrange for the sale of such items which are of value, and whose amount collected can be used to pay of creditors.

For more information related to the proceedings of bankruptcy and the role of the trustee it is advisable that applicants use the services of a professional attorney such as Mitchell Reed Sussman & Associates.

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