#1 Rated Bankruptcy Lawyers in San Diego

What Does The Trustee Do In My Ventura Chapter 7 Case?

In most Ventura Chapter 7 bankruptcy cases, debtors have very little interaction with their case trustee and this often prompts our clients to ask, “What does the Chapter 7 trustee do?” We’ll explain their duties, but you should also know that if you hire an expert, expect your case to be well-planned and to go smoothly—with the likelihood that you will only meet your case trustee one time at your 341 meeting (see below). After that, you will receive your discharge and your fresh start!

As bankruptcy attorneys in Ventura, we are used to answering your questions. Our lawyers have filed literally thousands of bankruptcy cases and are some of the most highly qualified and experienced bankruptcy experts in the country. Among other things, this means that we speak with the case trustees all the time so our clients benefit from our solid relationships as well as our expertise.

So what are the duties of the Chapter 7 trustee? After a chapter 7 petition is filed, a case trustee or “Chapter 7 trustee” is appointed for that case by the Office of the U.S. trustee. This case trustee is impartial and serves as a representative of the creditors. It is his or her duty to “administer the case” and “liquidate” the debtor’s nonexempt assets.

In order to “administer” the case, the case trustee reviews the debtor’s paperwork and conducts a meeting of creditors. This “meeting” is held pursuant to Bankruptcy Code Sec. 341 and is typically referred to as the “341 meeting.” In most cases, this is the one and only time the debtor will see and meet the case trustee. The 341 meeting is a routine procedure in an informal setting (not in court) and debtors are accompanied by their lawyers.

It is common at the 341 meeting, or shortly thereafter, for the case trustee to determine that a debtor’s assets are fully “exempt” and that there are no assets available to “liquidate” for the benefit of some payment to creditors. To make this determination, the case trustee reviews the debtor’s paperwork (asset schedules and “exemption” schedule that you and your attorney have prepared, prior tax return, etc.) and asks the debtor some questions to make sure the information is accurate. In most cases, the case trustee completes his or her review at this stage and shortly thereafter files a “no asset report” with the court.

But what if there are assets in a Chapter 7 case? Well, then the case trustee lets the creditors know that they should file “claims” with the court. And the case trustee then has the duty to sell or “liquidate” the assets for the creditors. The trustee has the right to sell assets (assuming they are not exempt and protected for your benefit) because the Bankruptcy Code creates an “estate” with makes the trustee the temporary legal owner of the debtor’s assets.

The trustee also has “avoiding powers” which give the trustee the right, in appropriate cases, to set aside preferential transfers made to creditors within 90 days before the petition; to undo security interests and other prepetition transfers of property that were not properly completed (perfected) under state law at the time of the petition; and to litigate state law claims against third parties like claims for fraudulent conveyance.

If the case trustee does recover money for creditors from these liquidation activities, then the trustee distributes the money to creditors according to a set priority system that the bankruptcy laws provide in order to sort out the rights between creditors of different types (for example, secured creditors, administrative payment to the trustee for his or her efforts, tax authorities, unsecured creditors, and so on).

Most people with primarily consumer debts who file Chapter 7 don’t care about the case trustee’s duties or activities except for one area of concern: the debtor’s claims of “exemption” and whether the case trustee will challenge any particular exemption claim that they have filed. This is why you will need an expert Ventura bankruptcy lawyer for your case. Exemption laws are tricky and the paperwork that a debtor files includes an intricate set of “exemption claims” that, in most cases, will allow you to keep all of your property after bankruptcy. But if these exemptions are mishandled, you may lose property that could have otherwise been protected.

Are you considering a Ventura Chapter 7 bankruptcy case? We offer a free consultation to every person that has debt or financial challenges, even if you simply want to learn more about your legal options and have no present intention to file bankruptcy. Get some expert advice for free. Call us at (800) 551-7922 today.

See What Our Clients Have To Say

Yelp Review

Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
Yelp Review

Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
Google Review

Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

Google Review

Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

Google Review

Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
Yelp Review

Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
Facebook Review

Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

Yelp Review

Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
Google Review

Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

Ready To Eliminate Your Debt?

Bankruptcy is still the best option. Other debt plans make promises, but only bankruptcy delivers.




1230 Columbia St. #1100 San Diego, CA 92101


11500 Olympic Blvd., 4th Floor Los Angeles, CA 90064


380 South Melrose Drive #308 Vista, CA 92081
© 2023 Bankruptcy Attorneys. All Right Reserved.

Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

© 2023 All Rights Reserved.