why would a bankruptcy trustee hire an attorney

The trustee in a Chapter 7 bankruptcy case does have lots of power. The trustee can hire an attorney to pursue claims. The trustee can hire an attorney to take depositions, issue subpoenas, and file lawsuits.

Full Answer

Why would a bankruptcy trustee request a lawyer?

Dec 11, 2018 · If a case gets complicated and there are assets, the trustee is entitled to retain counsel. Problem is you will be paying for this counsel. Converting to chapter 13 immediately is a tactic to prevent the chapter 7 trustee from running up attorney's fees. Follow the recommendations of your bankruptcy attorney.

What can a Chapter 7 bankruptcy trustee do?

Should a Trustee Hire an Attorney? Why Trustees Should Hire an Attorney. HESS-VERDON – #1 SOUTHERN CALIFORNIA TRUST & ESTATE LAW FIRM 1.) Fulfill fiduciary duty; 2.) Execute the trust as directed; 3.) Handle trust litigation; 4.) Prevent conflict of interest 5.) Streamline distributions; 6.) Protect trust assets and investments; 7.) Fulfilling legal requirements

Why should I hire a bankruptcy attorney?

Why Hire a Bankruptcy Attorney? Understanding the Benefits. ... Our legal team is more than willing to speak on your behalf with the bankruptcy trustee who oversees your case and be with you during the meeting of creditors. Throughout the bankruptcy process, we will look out for your best interests and strive to help you eliminate the maximum ...

Can a trustee hire an attorney to represent the estate?

The trustee would hire an attorney to reverse that. Impossible to give all the circumstances, but generally when a dispute arises in the course of a bankruptcy proceeding, the trustee would hire an …

Why is accuracy important in accounting?

That’s why accuracy in accounting is crucial when managing a trust. An attorney whose expertise in trust administration can help you prepare the trust accounting and coordinate the trust tax obligation if any. 9.) Reasonable Compensation. Having to act as a trustee can be pretty difficult.

What is a fiduciary?

Request a Case Review Today Call us at 949-706-7300Breach of Trustee Dutys A fiduciary is an entity in a position of trust and duty to another person. It could be an attorney, a trustee, or a board of directors. They have a fiduciary duty, in this case, to act...

Understanding the Benefits

There is no legal restriction against representing yourself when you file for bankruptcy, but experts including the United States Courts recommend that you retain legal counsel to increase your chances of success.

Protection from Creditors

We can take immediate collections defense actions to protect you against wage garnishment and repossessions. This can provide relief for you from the stress and worry of creditor harassment. We even allow and recommend that you send any further calls from your creditors directly to our office.

Clear Guidance Throughout the Entire Process

One of the most significant advantages of hiring an attorney is that you will not have to wonder whether you are correctly managing the situation. We will take care of the paperwork, help you gather the necessary documents, and represent you in court as well.

Craig Ivan Kelley

It sounds like the Trustee may notice some issues in your case where he/she may need counsel. It is impossible to ascertain what those possible issues could be absent further facts. You should discuss your question with your attorney and if you don’t have an attorney, you should hire one prior to the 341 meeting. Good luck!

Dorothy G Bunce

Even many bankruptcy attorneys do not understand that when a case is filed, there is always an immediate background investigation of the debt through the US Department of Justice computers.

Ashley Frances-May Morgan

The two answer you have gotten are spot on. It is only normal for a trustee to hire a lawyer when there are potential assets or potential issues to be litigated. The trustee hires a lawyer to file documents with the court, investigate transactions, get sales of property approved, object to inappropriate exemptions, etc.

Derek R. Caldwell

It is not normal. I agree with Mr. Bayer. If the trustee thinks there are assets, he can hire an attorney anytime he feels appropriate.

Leon D Bayer

It is quite normal in cases where the trustee thinks there will be assets to administer or when financial irregularities need to be investigated, such as improper transfers or improper creditor payments.#N#I assume you are self represented. You shouldn't be, and strongly suggest you see a local BK specialist immediately.

What is the role of a trustee in a Chapter 7 bankruptcy?

The Chapter 7 trustee is charged with the duty of making sure that any asset that can be seized from you is seized and sold and the monies are distributed to the general unsecured creditors who have followed the rules regarding how to apply for a distribution.

Can a Chapter 7 trustee pursue a personal injury claim?

The Chapter 7 bankruptcy trustee can also pursue claims on your behalf. For example, if you have a breach of contract claim or a personal injury claim, the Chapter 7 trustee can pursue the party that wronged you, pull that money into the bankruptcy case, and distribute that money to the unsecured creditors in your case – after paying himself ...

What happens if you have too much equity in your home?

If you do have too much equity in your home (and provided that your home is where you reside, because if you don’t reside there you cannot take advantage of Arizona’s homestead exemption), the trustee will have to sell the property. The property will be placed for sale with an agent.

Can a trustee hire an attorney?

The trustee can hire an attorney to pursue claims. The trustee can hire an attorney to take depositions, issue subpoenas, and file lawsuits. The trustee can demand that you turn over various documents and if you don’t do so, you can face severe penalties and even criminal action. The trustee is not your friend.

What happens after a home is sold?

After the property is sold, the trustee must first pay any and all mortgages on the property. After any and all mortgages are sold on the property, the trustee will pay the realtor’s commission.