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.

ADVERTISEMENT -
AD_GOOGLE_2_RESPONSIVE_PRE_CONTENT

.
 

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 Georgia Northern 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 Georgia from the US Department of Justice.

Once you bring up this list, find the Georgia trustees for the Georgia Northern District Bankruptcy Court.

GEORGIA

 

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

 

 

TRUSTEE(S) COVERING THE MIDDLE DISTRICT OF GEORGIA

 

Courtney M. Davis
1090-C Founders Boulevard
Athens, GA 30606
Phone: (706) 548-7070
Fax: (706) 613-2089

 

Walter W. Kelley
P.O. Box 70879
Albany, GA 31708
E-mail: WKelley@kelleylovett.com
Phone: (229)888-9128
Fax: (229)888-0966

 

Robert M. Matson
P.O. Box 1773
Macon, GA 31202
E-mail: rmatson@akin-webster.com
Phone: (478) 742-1889
Fax: (478) 742-7101

 

Joy R. Webster
544 Mulberry Street, Suite 400
P.O. Box 1098
Macon, GA 31202
E-mail: jwebster@akin-webster.com
Phone: (478)742-1889
Fax: (478)742-7101

TRUSTEE(S) COVERING THE NORTHERN DISTRICT OF GEORGIA

 

James G. Baker
305 North Greenwood Street
LaGrange, GA 30240
E-mail: jgbaker@jgbpc.com
Phone: (706) 884-3059
Fax: (706) 882-4062

 

Michael J. Bargar
171 17th Street, NW
Suite 2100
Atlanta, GA 30363
Phone: (404) 873-7030

 

Kyle A. Cooper
120 Travertine Trail
Alpharetta, GA 30022
E-mail: kylecoopertrustee@gmail.com
Phone: (770) 687-2982

 

Neil C. Gordon
171 17th Street, #2100
Atlanta, GA 30363
Phone: (404)873-8596

 

S. Gregory Hays
2964 Peachtree Road, NW
Suite 555
Atlanta, GA 30302 -2153
Phone: (404) 926-0051

 

Griffin E. Howell, III
P.O. Box 2271
Griffin, GA 30224
E-mail: newhow@bellsouth.net
Phone: (770) 227-4015

 

Jordan E. Lubin
8325 Dunwoody Place, Building 2
Atlanta, GA 30350
Phone: (770)424-8281

 

Theo Davis Mann
28 Jackson Street
Newnan, GA 30264
Phone: (770)253-2222

 

Tracey L. Montz
2146 Roswell Road
Suite 108 #406
Marietta, GA 30062
Phone: (404)713-6472

 

Albert F. Nasuti
2 Sun Court, Suite 400
Peachtree Corners, GA 30092
Phone: (770) 925-0111

 

Tamara M. Ogier
P.O. Box 1547
Decatur, GA 30031
E-mail: tmo@orratl.com
Phone: (404) 525-4000

 

Edwin K. Palmer
P.O. Box 1284
Decatur, GA 30031
E-mail: ekpalmerlaw@aol.com
Phone: (404)479-4449

 

Bradley J. Patten
340 Jesse Jewell Parkway
Suite 300
Gainesville, GA 30501
Phone: (770)536-3381

 

Jason L. Pettie
P.O. Box 17936
Atlanta, GA 30316
E-mail: trustee@jasonpettie.com
Phone: (404) 638-5984

 

Thomas D. Richardson
P.O. Box 5007
Rome, GA 30162 -5007
E-mail: trichardson@brinson-askew.com
Phone: (706)291-8853

 

Cathy L. Scarver
P. O. Box 672587
Marietta, GA 30006
E-mail: trusteescarver@bellsouth.net
Phone: (404)551-5142
Fax: (404)806-9652

 

Kathleen Steil
P.O. Box 1547
Decatur, GA 30031
E-mail: Ks@orratl.com
Phone: (404) 525-4000
Fax: (678) 381-1175

TRUSTEE(S) COVERING THE SOUTHERN DISTRICT OF GEORGIA

 

Tiffany E. Caron
P.O. Box 711
West Palm Beach, FL 33402
E-mail: tiffany.caron@hotmail.com
Phone: (404) 647 4917

 

Joseph E. Mitchell, III
P. O. Box 2504
Augusta, GA 30903
E-mail: mitchellje@bellsouth.net
Phone: (706) 826-1808
Fax: (706) 826-7959

 

James C. Overstreet, Jr.
1229 Augusta West Parkway
Augusta, GA 30909
E-mail: jco@klosinski.com
Phone: (706) 863-2255

 

Wendy A. Owens
P.O. Box 8846
Savannah, GA 31412
E-mail: trustee@coastalempirelaw.com
Phone: (912) 239-9888
Fax: (912) 239-9777

 

Joelyn R. Pirkle
273 East Walnut Street
Jesup, GA 31546
E-mail: joelynpirkle@gmail.com
Phone: (912) 427-9067
Fax: (912) 427-0083

 

Paul A. Schofield
P.O. Box 389
Brunswick, GA 31521
E-mail: trustee@ch7bwk.com
Phone: (912) 275-7018

ADVERTISEMENT -



Jurisdictional relevance: US

Legal Consumer - Fannin County, GALaw. The content of this article pertains to all US states and counties.