When you file for chapter 7 bankruptcy in Chicago you will be assigned a bankruptcy trustee. It is the trustee’s job to complete the following tasks:
- Examine schedules, assets and statement of financial affairs.
- Collect all unsecured assets and liquidate them.
- Make sure you take the opportunity to reaffirm any debts.
- Communicate the bankruptcy filing with the creditors involved.
- Distribute the cash garnered from liquidation to your creditors.
- Review proofs of claim in your case and object if necessary.
- Give notices to anyone you are providing alimony or child support to.
Ultimately your bankruptcy trustee has to guide your case through the process and make sure everything is taken care of. It is a sizeable job when you consider that in a chapter 7 bankruptcy case in Chicago that has no assets the bankruptcy trustee is paid a mere $60.
If the case involved the liquidation of assets the trustee will receive a commission based on a sliding scale statutory formula which is set by Bankruptcy Code section 326.
A trustee is a required when filing for chapter 7 bankruptcy in Chicago. They play a necessary role in the process. The role of the trustee does not replace the job done by Chicago bankruptcy lawyers. A trustee will ensure that everything is taken care of during bankruptcy however it is your chapter 7 bankruptcy attorney that will make sure everything is filed correctly and in a timely manner.
Chicago bankruptcy lawyers can also help you decide if you should file for chapter 13 bankruptcy or chapter 7 in Chicago. They can also evaluate your situation and tell you if it makes sense for you to file bankruptcy at all.
A good sign that you may need to file for bankruptcy is if:
- It is a challenge to pay anything more than the minimum payment on your credit card debt.
- You struggle to pay your bills on time every month.
- You have fallen behind on your payments.
- Creditors call daily demanding payment.
- You have received notifications that the foreclosure process is going to begin on your home.
- You have received notifications that your car is going to be repossessed.
- You’ve lost your income and it is proving difficult to find a new job.
These are the warning signs that it is definitely time to speak with a bankruptcy attorney in Chicago about your situation. They can advise on chapter 7 vs. chapter 13 bankruptcy and begin the filing process if you decide together that it is the best option for you.