3 THINGS CHAPTER 7 BANKRUPTCY TRUSTEES LOOK FOR IN MINNEAPOLIS, MN
You live in Minneapolis, MN and you are contemplating hiring LifeBack Law Firm to file Chapter 7 Bankruptcy on your behalf. You know you are going to hire LifeBack Law Firm as your bankruptcy law firm because LifeBack Law Firm is Minnesota’s most kind and helpful bankruptcy law firm. But before you file, you want to know, what do Chapter 7 Bankruptcy trustee’s look for in a Chapter 7 Bankruptcy case. The first thing you need to understand is Chapter 7 trustee’s get paid a small fee to administer most Chapter 7 Bankruptcy cases. Most would not be a trustee if they were paid this small fee only.
Chapter 7 trustees only make real money if they find and disburse monies to creditors. In other words, Chapter 7 trustee can be honey badgers searching for money to disburse to creditors so they get paid more money!
Here are three things most Chapter 7 trustee search for in a Chapter 7 Bankruptcy filing.
First, are there any non-exempt assets in the case? Chapter 7 trustee’s love non-exempt assets because they take those non-exempt assets, liquidate them into cash, and use the cash to disburse to creditors. What is non-exempt assets? Anything bankruptcy lawyers cannot exempt under the applicable exemption scheme laid out in statutes is non-exempt.
Second, has debtor made “preferential payments” to creditors? Sometimes, Chapter 7 trustees are allowed to claw back payments made to creditors in Chapter 7 Bankruptcy. Trustees will want to know if you have paid certain dollar amounts to creditors within certain time frames. Again, if clawed back, they can use those monies to disburse to creditors.
Third, has debtor made in fraudulent transfers to anyone in certain time frames? Chapter 7 trustees are allowed to claw back or void certain transfers made by debtors within certain time frames if debtor received less than fair market value for the transfer.
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When the time is right, or when you are ready, reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.