Working With the Bankruptcy Trustee

 

Filing for Chapter 7 bankruptcy means that you'll be dealing with a "bankruptcy trustee" who will be assigned to handle your case. The trustee's job is to gather all non-exempt property you own into the "bankruptcy estate" to determine what (if anything) can be sold and the proceeds distributed to your unsecured creditors. In most cases, there's nothing left — "no-asset" cases make up more than 90% of consumer chapter 7 cases — but the trustee will be looking.

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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 toreduce 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 New York 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 New York from the US Department of Justice.

Once you bring up this list, find the New York trustees for the New York Eastern District Bankruptcy Court.

NEW YORK

 

Note: The individuals listed are private parties, not government employees.

 

 

TRUSTEE(S) COVERING THE EASTERN DISTRICT OF NEW YORK

 

R. Kenneth Barnard
3305 Jerusalem Avenue, Suite 215
Wantagh, NY 11793
Phone: (516) 809-9397

 

David J. Doyaga
26 Court Street, 10th Floor
Suite 1601
Brooklyn, NY 11242
Phone: (718) 488-7500

 

Lori Lapin Jones
98 Cutter Mill Road
Suite 201 North
Great Neck, NY 11021
Phone: (516) 466-4110

 

Kenneth I. Kirschenbaum
200 Garden City Plaza
Garden City, NY 11530
Phone: (516)747-6700

 

Debra Kramer
98 Cuttermill Road, Suiter 466 South
Great Neck, NY 11021
Phone: (516) 482-6300
Fax: (516) 482-6317

 

Richard J. McCord
90 Merrick Avenue
East Meadow, NY 11554
Phone: (516)794-1616

 

Allan B. Mendelsohn
38 New Street
Huntington, NY 11743
Phone: (516)921-1670

 

Gregory M. Messer
26 Court Street, Suite 2400
Brooklyn, NY 11242
Phone: (718)858-1474

 

Robert J. Musso
26 Court Street, Suite 2211
Brooklyn, NY 11242
Phone: (718)237-9059

 

Alan Nisselson
156 West 56th Street
New York, NY 10019
Phone: (212)237-1000

 

Marc A. Pergament
400 Garden City Plaza, Suite 403
Garden City, NY 11530
Phone: (516)877-2424

 

Robert L. Pryor
675 Old Country Road
Westbury, NY 11590
Phone: (516)997-0999

 

Kenneth P. Silverman
100 Jericho Quadrangle, Suite 300
Jericho, NY 11753 -3302
Phone: (516)479-6300

 

Richard L. Stern
2950 Express Drive South, Suite 109
Islandia, NY 11749
Phone: 631)549-7900

 

Andrew M. Thaler
675 Old Country Road
Westbury, NY 11590
Phone: (516) 279-6700

TRUSTEE(S) COVERING THE NORTHERN DISTRICT OF NEW YORK

 

Neil T. Bhatt
536 State Street
Ogdensburg, NY 13669
Phone: (315) 713-4837

 

Philip J. Danaher
252 Broadway
Rensselaer, NY 12141
Phone: (518)463-4383

 

Steven R. Dolson
126 North Salina Street
3rd Floor
Syracuse, NY 13202
Phone: (315) 423-3328

 

Christian H. Dribusch
1001 Glaz Street
East Greenbush, NY 12061
E-mail: cdribusch@chdlaw.net
Phone: (518) 729-4331
Fax: (518) 463-4386

 

Marc S. Ehrlich
64 Second Street
Troy, NY 12180
Phone: (518)272-2110

 

Mary Lannon Fangio
247-259 W. Fayette Street
Syracuse, NY 13202
Phone: (315)472-7832

 

William J. Leberman
1 Lincoln Center
110 W. Fayette St., Suite 1110
Syracuse, NY 13202
Phone: (315) 478-1334

 

Paul A. Levine
50 Beaver Street
Albany, NY 12207
Phone: (518)433-8800

 

Michael J. O'Connor
20 Corporate Woods Boulevard
Albany, NY 12211
Phone: (518)465-0400

 

Randy J. Schaal
312 Broad St
P.O. Box 10
Oneida, NY 13421
Phone: (315)363-6888

TRUSTEE(S) COVERING THE SOUTHERN DISTRICT OF NEW YORK

 

Yann Geron
885 Third Avenue, 20th Floor
New York, NY 10022
Phone: (212) 209-3050

 

Salvatore LaMonica
3305 Jerusalem Avenue
Wantagh, NY 11793
Phone: (516) 826-6500

 

Howard P. Magaliff
335 Madison Avenue, 9th Floor
New York, NY 10017
Phone: (646) 453-7851

 

Gregory M. Messer
26 Court Street, Suite 2400
Brooklyn, NY 11242
Phone: (718)858-1474

 

Alan Nisselson
156 West 56th Street
New York, NY 10019
Phone: (212)237-1000

 

Marianne T. O'Toole
22 Valley Road
Katonah, NY 10536
Phone: (914) 232-1511

 

Deborah J. Piazza
1350 Broadway, 11th floor
New York, NY 10018
Phone: (212) 216-1140

 

Kenneth P. Silverman
100 Jericho Quadrangle, Suite 300
Jericho, NY 11753 -3302
Phone: (516)479-6300

 

Fred Stevens
200 West 41st Street
17th Floor
New York, NY 10036 -7203
E-mail: fstevens@klestadt.com
Phone: (212) 679-5342

 

Angela G. Tese-Milner
735 Wickham Avenue
P.O. Box 35
Mattituck, NY 11952
Phone: (212) 475-3673

 

Albert Togut
One Penn Plaza, Suite 3335
New York, NY 10119
Phone: (212)594-5000

 

Mark S. Tulis
220 White Plains Road
2nd Floor
Tarrytown, NY 10591
Phone: (914) 747-4400

TRUSTEE(S) COVERING THE WESTERN DISTRICT OF NEW YORK

 

Daniel Evans Brick
P.O. Box 604
91 Tremont Street
North Tonawanda, NY 14120
Phone: (716)693-2335

 

Wendy J. Christophersen
403 Main Street, Suite 500
Buffalo, NY 14203
Phone: (716) 852-7373

 

Joseph G Frazier
280 East Avenue
Lockport, NY 14094
E-mail: joe@joefrazierlaw.com
Phone: (716) 439-8619

 

Kenneth W. Gordon
1039 Monroe Ave.
Rochester, NY 14620
Phone: (585)244-1070
Fax: (585)244-1085

 

Morris L. Horwitz
P.O. Box 716
Getzville, NY 14068
E-mail: morris.horwitz@gmail.com
Phone: (716)830-3279
Fax: (716)748-6095

 

Devin L. Palmer
145 Culver Road
Suite 100
Rochester, NY 14620
E-mail: dpalmer@boylancode.com
Phone: (585) 232-5300

 

Mark J. Schlant
404 Cathedral Place
298 Main Street
Buffalo, NY 14202
Phone: (716)855-3200

 

Regina A. Walker
300 International Dr., Suite 100
New York, NY 14221
E-mail: RAW@reginawalker.com
Phone: (716) 626-3510

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Jurisdictional relevance: US

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