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 Virginia 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 Virginia from the US Department of Justice.

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

VIRGINIA

 

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

 

 

TRUSTEE(S) COVERING THE EASTERN DISTRICT OF VIRGINIA

 

Peter J. Barrett 
901 East Byrd Street 
Suite 1000 
Richmond, VA 23219 
E-mail: peter.barrett@kutakrock.com 
Phone: (804)343-5237 
Fax: (804)783-6192 

 

William A. Broscious 
P.O. Box 71180 
Henrico, VA 23255 
E-mail: wbroscious@wabtrustee.com 
Phone: (804) 516-0670 

 

Karen M. Crowley 
150 Boush Street, Ste. 300 
Norfolk, VA 23510 
E-mail: kcrowley@clrbfirm.com 
Phone: (757) 333-4500 
Fax: (757) 333-4514 

 

Thomas B. Dickenson 
1170 Lexan Avenue 
Suite 203 
Norfolk, VA 23508 
E-mail: trustee@dickenson.us 
Phone: (757) 489-1300 

 

H. Jason Gold 
P.O. Box 57359 
Washington , DC 20037 
E-mail: goldtrustee@fiduciaryservicesgroup.com 
Phone: (804) 223-2031 

 

Donald F. King 
1775 Wiehle Ave., Suite 400 
Reston, VA 20190 
E-mail: DonKing@ofplaw.com 
Phone: (703)218-2116 

 

Kevin R. McCarthy 
8508 Rehoboth Court 
Vienna, VA 22182 
Phone: (703)770-9261 

 

Janet M. Meiburger 
1493 Chain Bridge Road, Suite 201 
McLean, VA 22101 
E-mail: janetm@meiburgerlaw.com 
Phone: (703)556-7871 

 

Daniel A. Raymond 
4732 Longhill Road, Suite 3101 
Williamsburg, VA 23188 
E-mail: raymondbankruptcy@gmail.com 
Phone: (757) 565-0423 
Fax: (757) 565-2064 

 

Bruce E. Robinson 
1374 Goodes Ferry Road 
P.O. Box 538 
South Hill, VA 23970 
E-mail: bruce.robinsontr@gmail.com 
Phone: (434) 447-7922 

 

David R. Ruby 
100 Shockoe Slip 
Richmond, VA 23219 
E-mail: druby@t-mlaw.com 
Phone: (804) 698-6220 
Fax: )804) 780-1813 

 

Tom C. Smith, Jr. 
500 E. Plume Street 
Norfolk, VA 23510 
Phone: (757)428-3481 

 

Lynn L. Tavenner 
20 N. Eight Street, 2nd Floor 
Richmond, VA 23219 
Phone: (804)783-8300 

 

Jennifer J. West 
411 East Franklin St., Ste. 600 
Richmond, VA 23219 
E-mail: jwest@spottsfain.com 
Phone: (804) 697-2094 

TRUSTEE(S) COVERING THE WESTERN DISTRICT OF VIRGINIA

 

William E. Callahan, Jr. 
P.O. Box 40013 (24022-0013) 
10 Franklin Road, SE Suite 900 
Roanoke, VA 24011 
E-mail: Callahan@gentrylocke.com 
Phone: (540) 983-9309 

 

Scot S. Farthing 
490 West Monroe Street 
Wytheville, VA 24382 
Phone: (276)625-0222 

 

Andrew S. Goldstein 
310 First Street, Suite 1200 
Roanoke, VA 24003 
Phone: (540)343-9800 

 

Steven L. Higgs 
9 Franklin Road, SW 
Roanoke, VA 24011 -2403 
E-mail: higgs@higgslawfirm.com 
Phone: (540)400-7990 

 

Hannah W. Hutman 
342 South Main Street 
Harrisonburg, VA 22801 
Phone: (540)433-2444 

 

W. Stephen Scott 
P.O. Box 1312 
Charlottesville, VA 22902 
E-mail: wsscott7trustee@earthlink.net 
Phone: (434) 227-5520 

 

Robert S. Stevens 
501 Grove Avenue 
Charlottesville, VA 22902 
Phone: (434) 973-5012 

 

George I. Vogel, II 
P.O. Box 18188 
204 McClanahan Street, SW 
Roanoke, VA 24014 -0815 
Phone: (540)982-1220 




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Jurisdictional relevance: US

Legal Consumer - King George County, VALaw. The content of this article pertains to all US states and counties.