When you file for bankruptcy, a “Trustee” is appointed to your case.
It’s essential to understand the role of the trustee and who they “work” for.
Although the court appoints the trustee, the trustee’s job is to get as much property as possible to be sold and the proceeds distributed equitably to your unsecured creditors, according to “priority” rules — determining who gets paid first — under federal and state law.
Almost all of your dealings with the bankruptcy court will be with the trustee assigned to your administering your case, not the bankruptcy judge.
The bankruptcy judge is only there to rule on disputed legal issues and issue your “discharge” order — the piece of paper that officially cancels your debts upon completing a successful filing — which is the ultimate goal of bankruptcy.
What does the Trustee do in a Chapter 7 case?
Bankruptcy Code § 323 states that the trustee is the representative of the “bankruptcy estate” with the capacity to sue and be sued.
The Bankruptcy Code defines the trustee’s duties and obligations:
- Section 704 defines the statutory duties of the trustee in a Chapter 7 bankruptcy case, and, under § 704, the primary task of the trustee is to “reduce to money the property of the estate for which such trustee serves” that is: to “liquidate” the assets and distribute the proceeds to your creditors. (Note this the job in Chapter 7 (“liquidation”) bankruptcy is different than it is in Chapter 13 (“pay over five years”) bankruptcy.
- Other relevant duties include ensuring that the debtor performs their intention (regarding secured debts) as specified in § 521(a)(2)(B) (See debtor’s “statement of intention” as provided in Form ____),
- investigate the financial affairs of the debtor (see, “What is a 341 meeting?”),
- and “if advisable, oppose the discharge of the debtor.” (see “What kinds of debts can be discharged in bankruptcy?” and “Things that might make your bankruptcy case fail.")
How Are Trustees Paid?
Bankruptcy Code § 326 says that a trustee’s compensation is based upon a percentage of the property of the estate the trustee administers. As a result, a trustee has a financial incentive to maximize the property of the estate. Consequently, discussions or disputes with a Chapter 7 trustee will primarily focus on what is property of the estate.
How Trustees Can Increase the size of the “Bankruptcy Estate.”
The whole point of bankruptcy is ensuring everyone gets their rightful share of the “pie” when there’s not enough pie. Or, to put it a more legal way: to provide an orderly distribution of available assets (“the pie”) to all creditors based on the priority outlined in federal bankruptcy law.
The trustee’s job is to make that “pie” as large as legally possible. What follows is a list of ways they can try to do that.
Undoing “Preferential Transfers” That You Made Before Filing
One tool the trustee has is the authority to undo any “preferential transfers.” That is, any money or property you transferred to someone else just before (generally up to 180 days before) filing bankruptcy.
Under this power, the trustee will be very interested in undoing any recent repayments of debts you made to your relatives or friends just before you filed for bankruptcy, as these are called a “preference.”
The trustee can reverse these transactions (i.e., claw the money back) and reclaim it for the “bankruptcy estate” because, by repaying these people before just going bankrupt, you have “preferred” some people you owe money to over others -- and bankruptcy does not allow this, because bankruptcy law has strict rules about who gets priority when it comes to claiming any available assets you may have.
Wiping out invalid liens on your property to increase equity to be distributed to creditors
Suppose you own a house with a second mortgage or have several liens on your property. In that case, the trustee may look to “void” some of those liens if doing so will increase your home equity to the point that it is no longer fully protected by applicable homestead exemption laws.
Who Are the Trustees for California Eastern District Bankruptcy Court?
To find the contact information for trustees in your state who handle Chapter 7 cases:
Click here for a list of Chapter 7 trustees for California from the US Department of Justice.
Once you bring up this list, find the California trustees for the California Eastern District Bankruptcy Court.
CALIFORNIA
- Note: The individuals listed are private parties, not government employees.
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TRUSTEE(S) COVERING THE CENTRAL DISTRICT OF CALIFORNIA
- Karl T. Anderson
340 South Farrell Drive
Suite A210
Palm Springs, CA 92262
E-mail: ktabktrustee@gmail.com
Phone: (760) 778-4889
Fax: (760) 778-8869
- Wesley H. Avery
758 E. Colorado Blvd., Suite 210
Pasadena, CA 91101
E-mail: wes@averytrustee.com
Phone: (626) 395-7576
Fax: (661) 430-5467
- Lynda T. Bui
100 Spectrum Center Dr., Suite 600
Irvine, CA 92656
E-mail: Lbui@shulmanbastian.com
Phone: (949) 340-3400
Fax: (949) 340-3000
- Thomas H. Casey
22342 Avenida Empresa, Suite 245
Rancho Santa Margarita, CA 92688
E-mail: tomcasey@tomcaseylaw.com
Phone: (949) 766-8787
Fax: (949) 766-9896
- Arturo M. Cisneros
3403 10th Street, Suite 714
Riverside, CA 92501
E-mail: Arturo@mclaw.org
Phone: (951)-682-9705
Fax: (951)-682-9707
- Charles W. Daff
2107 North Broadway,
Suite 308
Santa Ana, CA 92708
E-mail: charleswdaff@gmail.com
Phone: (657) 218-4800
Fax: (657) 218-4858
- Carolyn Anne Dye
15030 Ventura Blvd., Suite 527
Sherman Oaks, CA 91403
E-mail: cdye@cadye.com
Phone: (818) 287-7003
Fax: (323) 987-5763
- Howard Marc Ehrenberg
333 South Grand Ave., Suite 3400
Los Angeles, CA 90071
E-mail: hehrenberg@sulmeyerlaw.com
Phone: (213) 626-2311
Fax: (213) 629-4520
- Jeremy W. Faith
16030 Ventura Blvd., Suite 470
Encino, CA 91436
E-mail: jeremy@marguliesfaithlaw.com
Phone: (818) 705-2777
Fax: (888) 463-8799
- Todd A. Frealy
3403 Tenth Street
Suite 709
Riverside, CA 92501
E-mail: TAF@lnbyg.com
Phone: (951) 784-4122
Fax: (951) 784-7143
- Jeffrey I. Golden
650 Town Center Drive
Suite 600
Costa Mesa, CA 92626
E-mail: jgolden@wgllp.com
Phone: (714) 966-1000
Fax: (714) 966-1002
- Amy L. Goldman
633 West 5th Street
Suite 4000
Los Angeles, CA 90071
E-mail: amy.goldman@lewisbrisbois.com
Phone: (213)250-1800
- Rosendo Gonzalez
530 S. Hewitt St
Suite 148
Los Angeles, CA 90013
E-mail: rossgonzalez@gonzalezplc.com
Phone: (213)452-0071
- David M. Goodrich
650 Town Center Drive
Suite 600
Costa Mesa, CA 92626
E-mail: dgoodrich@wgllp.com
Phone: (714) 966-1000
Fax: (714) 966-1002
- David Keith Gottlieb
16255 Ventura Blvd., Suite 440
Encino, CA 91436
E-mail: dgottlieb@dkgallc.com
Phone: (818) 539-7720
Fax: (818) 436-0729
- Howard B. Grobstein
9363 Magnolia Avenue
Riverside, CA 92503
E-mail: hgrobstein@gtllp.com
Phone: (951) 234-0951
Fax: (951) 684-2363
- Weneta M. A. Kosmala
4425 Jamboree, Suite 183
Newport Beach, CA 92660
E-mail: wkosmala@kosmalalaw.com
Phone: (714) 708-8190
- Brad D. Krasnoff
1901 Avenue of the Stars
Suite 450
Los Angeles, CA 90067 -6006
E-mail: bkrasnoff@danninggill.com
Phone: (310) 277-0077
Fax: (310) 277-5735
- Heide C. Kurtz
2515 South Western Avenue, Suite 11
San Pedro, CA 90732
E-mail: hkurtz@hkurtzco.com
Phone: (310) 832-3604
- Sam S. Leslie
1130 S. Flower Street, Suite 312
Los Angeles, CA 90015
E-mail: sleslie@trusteeleslie.com
Phone: (323) 987-5780
Fax: (323) 987-5763
- Richard A. Marshack
870 Roosevelt
Irvine, CA 92620
E-mail: RMarshack@MarshackHays.com
Phone: (949) 333-7777
Fax: (949) 333-7778
- Peter J. Mastan
550 S. Hope Street, Suite 1765
Los Angeles, CA 90071
E-mail: Peter.Mastan@Dinsmore.com
Phone: (213) 335-7738
Fax: (213) 335-7740
- Sandra K. McBeth
7343 El Camino Real, #185
Atascadero, CA 93422
E-mail: smcbeth@mcbethlegal.com
Phone: (805) 464-2959
Fax: (805) 357-5905
- John J. Menchaca
835 Wilshire Blvd., Suite 300
Los Angeles, CA 90017
E-mail: jmenchaca@menchacacpa.com
Phone: (213) 683-3317
Fax: (213) 455-0111
- Elissa D. Miller
333 South Grand Ave., Suite 3400
Los Angeles, CA 90071
E-mail: emiller@sulmeyerlaw.com
Phone: (213) 626-2311
Fax: (213) 629-4520
- Jerry Namba
504 East Chapel Street
Santa Maria, CA 93454
E-mail: jnambalaw@yahoo.com
Phone: (805) 922-2575
- Karen S. Naylor
4910 Birch Street
Suite 120
Newport Beach, CA 92660
E-mail: karen@ringstadlaw.com
Phone: (949) 748-7936
Fax: (949) 851-6926
- John P. Pringle
6055 E. Washington Blvd. #500
Los Angeles, CA 90040 -2466
E-mail: jpringle@rpmlaw.com
Phone: (323)724-3117
Fax: (323) 724-5410
- Jason M. Rund
270 Coral Circle
El Segundo, CA 90245
E-mail: jrund@srlawyers.com
Phone: (310) 640-1200
- David Seror
21650 Oxnard Street, Suite 500
Woodland Hills, CA 91367
E-mail: dseror@bg.law
Phone: (818) 827-9200
Fax: (818) 936-0624
- Larry D. Simons
3610 Central Avenue, Suite 400
Riverside, CA 92506
E-mail: larry@lsimonslaw.com
Phone: (951) 686-6300
Fax: (951) 742-4733
- Diane C. Weil
5950 Canoga Avenue Suite 400
Woodlawn Hills, CA 91367
E-mail: dcweil@dcweillaw.com
Phone: (818) 946-1270
Fax: (310) 277-5735
- Robert S. Whitmore
3600 Lime Street, Suite 616
Riverside, CA 92501
E-mail: rswtrustee@yahoo.com
Phone: (951) 276-9292
- Edward M. Wolkowitz
2818 LaCienega Avenue
Los Angeles, CA 90034
E-mail: emw@lnbyg.com
Phone: (310) 229-3364
Fax: (310) 229-1244
- Timothy J. Yoo
2818 La Cienega Avenue
Los Angeles, CA 90034
E-mail: tjy@lnbyg.com
Phone: (310) 229-1234
Fax: (310) 861-0929
- Nancy J. Zamora
633 West 5th Street, Suite 2600
Los Angeles, CA 90071
E-mail: zamora3@aol.com
Phone: (213) 488-9411
Fax: (213) 488-9418
- Karl T. Anderson
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TRUSTEE(S) COVERING THE EASTERN DISTRICT OF CALIFORNIA
- Irma C. Edmonds
P.O. Box 3608
Pinedale, CA 93650
E-mail: icetrustee@gmail.com
Phone: (559) 221-2233
- Gary R. Farrar
P.O. Box 576097
Modesto, CA 95357 -6097
E-mail: gfarrar@ecf.eqpiqsysmtems.com
Phone: (209)551-1962
- Nichole B. Farris
2607 Forest Ave., Ste. 120
Chico, CA 95928
E-mail: nikki@nfarrislaw.com
Phone: (530) 898-1488
- Peter L. Fear
P.O. Box 28490
Fresno, CA 93729
E-mail: trustee@trusteefear.com
Phone: (559) 464-5295
- J. Michael Hopper
P.O. Box 73826
Davis, CA 95617
E-mail: jmhopper@jmhtrustee.com
Phone: (530)757-2033
- Kimberly J. Husted
11230 Gold Express Drive
Suite 310-411
Gold River, CA 95670
E-mail: kh7trustee@gmail.com
Phone: (916) 635-1939
- Geoffrey M. Richards
P.O. Box 579
Orinda, CA 94563
E-mail: GRTrustee@pacbell.net
Phone: (916) 288-8365
- James E. Salven
P.O. Box 25970
Fresno, CA 93729 -5970
E-mail: jim@salven-cpa.com
Phone: (559)230-1095
- Susan K. Smith
2701 Del Paso Road, Suite 130-PMB 399
Sacramento, CA 95835
E-mail: sksmith3@earthlink.net
Phone: (916) 833-2936
Fax: (916) 313-3521
- Henry M. Spacone
P.O. Box 255808
Sacramento, CA 95865 -5808
E-mail: hspacone@yahoo.com
Phone: (916) 481-3150
- Jeffrey M. Vetter
P.O. Box 2424
Bakersfield, CA 93303
E-mail: jeffreyvetter@hotmail.com
Phone: (661)809-6806
- Irma C. Edmonds
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TRUSTEE(S) COVERING THE NORTHERN DISTRICT OF CALIFORNIA
- Kari Bowyer
P.O. Box 700096
San Jose, CA 95170
E-mail: trusteebowyer@gmail.com
Phone: (408) 641-1327
- Frode "Fred" S. Hjelmeset
P.O. Box 4188
Mountain View, CA 94040
E-mail: fhtrustee@gmail.com
Phone: (650) 386-5634
- Timothy W. Hoffman
P.O. Box 1761
Sebastopol, CA 95473
E-mail: twh1761@yahoo.com
Phone: (707) 874-2066
- Janina M. Hoskins
P.O. Box 158
Middletown, CA 95461
E-mail: Jmelder7@aol.com
Phone: (707) 569-9508
Fax: (707) 569-9518
- Doris A. Kaelin
P.O. Box 1582
Santa Cruz, CA 95061
E-mail: dktrustee@gmail.com
Phone: (831) 600-8093
- Michael G. Kasolas
P.O. Box 27526
San Francisco, CA 94127
E-mail: trustee@kasolas.net
Phone: (415) 504-1926
- Sarah L. Little
2415 San Ramon Valley Blvd.
Suite 4432
San Ramon, CA 94583
E-mail: sarah@littletrustee.com
Phone: (510) 485-0740
- Paul J. Mansdorf
1569 Solano Ave. #703
Berkeley, CA 94707
Phone: (510) 526-5993
- E. Lynn Schoenmann
35 Miller Ave., #298
Mill Valley, CA 94941
E-mail: tteeschoenmann@earthlink.net
Phone: (415) 569-4390
Fax: (415) 362-0416
- Marlene G. Weinstein
1511 M Sycamore Ave., #259
Hercules, CA 94547
E-mail: mgwtrustee@mgwtrustee.com
Phone: (925) 482-8982
- Kari Bowyer
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TRUSTEE(S) COVERING THE SOUTHERN DISTRICT OF CALIFORNIA
- Leonard J. Ackerman
6977 Navajo Road, #124
San Diego, CA 92119
E-mail: ljabkatty@gmail.com
Phone: (619) 463-0555
- Christopher R. Barclay
P.O. Box 2819
La Mesa, CA 91943 -2819
E-mail: admin@crb7trustee.com
Phone: (619) 255-1529
- Gerald Holt Davis
P.O. Box 124539
San Diego, CA 92112 -4539
E-mail: ghd@trusteedavis.com
Phone: (619) 400-9997
- Leslie T. Gladstone
5656 La Jolla Blvd., Ste. B
La Jolla, CA 92037
E-mail: leslieg@flgsd.com
Phone: (858)454-9887
Fax: (858)454-9596
- Ronald E. Stadtmueller
10755 Scripps Poway Pkwy., #370
San Diego, CA 92131
E-mail: ronstadtmueller@aol.com
Phone: (858) 564-9310
- Leonard J. Ackerman
The content of this article pertains to all US states and counties.