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 Texas Western 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 Texas from the US Department of Justice.

Once you bring up this list, find the Texas trustees for the Texas Western District Bankruptcy Court.

TEXAS

 

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

 

 

TRUSTEE(S) COVERING THE EASTERN DISTRICT OF TEXAS

 

Diane S. Carter 
60 North Central Expressway, 
Suite 101 
Plano, TX 75074 
E-mail: dsbarron@rbarronlaw.com 
Phone: (972)422-8377 

 

Michelle H. Chow 
P.O. BOX 601389 
Dallas, TX 75360 -1389 
E-mail: mhchow@swbell.net 
Phone: (214)521-6627 
Fax: (214)320-2966 

 

Christopher J. Moser 
2001 Bryan Street, Suite 1800 
Dallas, TX 75201 
Phone: (214)880-1805 

 

Linda S. Payne 
11700 Preston Road 
Suite 660-667 
Dallas, TX 75230 
E-mail: linda@paynetrustee.com 
Phone: (214) 558-7796 

 

Mark A. Weisbart 
10501 N. Central Expy., suite 106 
Dallas, TX 75231 
E-mail: mweisbart@haywardfirm.com 
Phone: (972) 755-7100 

 

Stephen Joseph Zayler 
123 E. Lufkin Avenue 
Lufkin, TX 75901 
Phone: (936)634-1020 

TRUSTEE(S) COVERING THE NORTHERN DISTRICT OF TEXAS

 

Shawn K. Brown 
P.O. Box 93749 
Southlake, TX 76092 
E-mail: shawn@browntrustee.com 
Phone: (817) 348-0777 

 

Anne E. Burns 
900 Jackson Street 
Suite 570, Founders Square 
Dallas, TX 75202 
Phone: (214) 573-7343 

 

James W. Cunningham 
6412 Sondra Drive 
Dallas, TX 75214 
Phone: (214)827-9112 

 

Marilyn D. Garner 
2007 East Lamar Boulevard, Suite 200 
Arlington, TX 76006 
Phone: (817) 505-1499 
Fax: (817) 549-7200 

 

Areya Holder Aurzada 
901 Main Street 
Suite 5309 
Dallas, TX 75202 
E-mail: areya@holderlawpc.com 
Phone: (972) 438-8800 
Fax: (972) 438-8825 

 

Myrtle L. McDonald 
3305 66th Street, Suite 3 
Lubbock, TX 79413 
E-mail: mmcdonald@epitrustee.com 
Phone: (806)792-0056 
Fax: (806)589-0790 

 

Jeffrey H. Mims 
900 Jackson St., Suite 560 
Dallas, TX 75202 
E-mail: jffm@chfirm.com 
Phone: (214) 210-2913 

 

Harvey L. Morton 
P.O. Box 10305 
Lubbock, TX 79408 
E-mail: hlmortonlaw@aol.com 
Phone: (806)762-0570 

 

R. Newhouse 
401 Century Pkwy 
Unit 715 
Allen, TX 75013 
E-mail: Rn7trustee@gmail.com 
Phone: (469) 777-6560 

 

Laurie Dahl Rea 
777 Main Street, Suite 1550 
Fort Worth, TX 76102 
E-mail: lrea@forsheyprostok.com 
Phone: (817) 877-4224 

 

Diane G. Reed 
501 N. College Street 
Waxahachie, TX 75165 
Phone: (972) 938-7334 

 

Kent D. Ries 
4211 I-40 West, Suite 101 
Amarillo, TX 79106 
Phone: (806)242-7437 

 

Scott M. Seidel 
6505 West Park Boulevard, #357 
Suite 306 
Dallas, TX 75093 
E-mail: scott@scottseidel.com 
Phone: (214) 234-2503 

 

Daniel J. Sherman 
509 N. Montclair Avenue 
Dallas, TX 75208 
Phone: (214)942-5502 

 

John D. Spicer 
P.O. Box 820009 
North Richland Hills, TX 76182 
E-mail: jdspicer@chfirm.com 
Phone: (214) 573-7331 
Fax: (214) 573-7399 

 

Behrooz P. Vida 
3000 Central Drive 
Bedford, TX 76021 
E-mail: Behrooz@vidalawfirm.com 
Phone: (817) 358-9977 

 

Robert Yaquinto, Jr. 
509 N. Montclair Avenue 
Dallas, TX 75208 
Phone: (214)942-5502 

TRUSTEE(S) COVERING THE SOUTHERN DISTRICT OF TEXAS

 

Allison Davison Byman 
7924 Broadway, Suite 104 
Pearland, TX 77581 
E-mail: adb@bymanlaw.com 
Phone: (281) 884-9269 

 

Catherine S. Curtis 
P. O. Box 720788 
McAllen, TX 78504 
E-mail: ccurtis@pulmanlaw.com 
Phone: (956) 467-1000 
Fax: (956) 331-2815 

 

Eva S. Engelhart 
7700 San Felipe, Suite 550 
Houston, TX 77063 
E-mail: eengelhart@rossbanks.com 
Phone: (713) 626-1200 
Fax: (713) 623-6014 

 

Christopher R. Murray 
602 Sawyer Street, Suite 400 
Houston, TX 77007 
E-mail: Christopher.murray@jmbllp.com 
Phone: (832) 529-3027 

 

Janet S. Northrup 
Total Plaza 
1201 Louisiana, 28th Floor 
Houston, TX 77002 
E-mail: jsn@hwa.com 
Phone: (713) 328-8233 
Fax: (713) 351-0333 

 

Ronald J. Sommers 
2800 Post Oak Blvd., 61st Floor 
Houston, TX 77056 
E-mail: rsommers@nathansommers.com 
Phone: (713)960-0303 
Fax: (713)892-4800 

 

Randy W. Williams 
7924 Broadway, Suite 104 
Pearland, TX 77581 
E-mail: rww@bymanlaw.com 
Phone: (281) 884-9262 

TRUSTEE(S) COVERING THE WESTERN DISTRICT OF TEXAS

 

Ronald E. Ingalls 
P.O. Box 2867 
Fredericksburg, TX 78624 -1927 
E-mail: ron@ingallstrustee.com 
Phone: (830) 321-0878 
Fax: (830) 321-0913 

 

J. Patrick Lowe 
2402 East Main Street 
Uvalde, TX 78801 
E-mail: pat.lowe.law@gmail.com 
Phone: (830) 407-5115 

 

Randolph N. Osherow 
342 W. Woodlawn, Suite 100 
San Antonio, TX 78212 -3314 
E-mail: rosherow@hotmail.com 
Phone: (210)738-3001 
Fax: (210)737-6312 

 

Jose C. Rodriguez 
342 Woodlawn, Suite 103 
San Antonio, TX 78212 
E-mail: jrodlaw@sbcglobal.net 
Phone: (210)738-8881 
Fax: (210)738-8882 

 

Ron Satija 
P.O. Box 660208 
Austin, TX 78766 
E-mail: info@satijatrustee.com 
Phone: (512) 900-8223 
Fax: (512) 900-8224 

 

James E. Studensky 
3912 W. Waco Drive 
Waco, TX 76710 
E-mail: jstudensky.trustee@outlook.com 
Phone: (254) 776-9630 
Fax: (254) 296-0190 

 

Johnny W. Thomas, Jr. 
1153 E. Commerce 
San Antonio, TX 78205 
E-mail: johnny@johnnythomaslaw.com 
Phone: (210)226-5888 




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Jurisdictional relevance: US

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