The debtor's property under the administration of the bankruptcy trustee is considered the bankruptcy estate. When a trustee abandons property, he or she has released it from the estate. Property possessed by the debtor is typically abandoned to the debtor; however, property encumbered by liens might be abandoned directly to the secured lien holder for repossession.
Frequently Asked Questions
Our frequently asked questions also address Trustee:
A meeting of creditors, also known as a 341 meeting, is a meeting that occurs in every bankruptcy case and permits questions to be asked of the debtor(s). Despite its name, creditors generally do not attend a meeting of creditors. Instead, the bankruptcy trustee or his or her representative will be the primary individual asking questions. Your debtor's attorney attends the meeting with you. At Fabricius & Fabricius PLLC, our standard practice is the that same attorney who assisted you pre-filing will accompany you at the meeting.
One of bankruptcy's unique aspects is that there is a huge cast of characters in bankruptcy, each with a particular role. Different officials and parties review filed bankruptcy papers for different things.
When an individual files a chapter 7 or chapter 13 bankruptcy case in North Carolina, or anywhere, one of the first things to happen is that a trustee is appointed. This is an important role, and the trustee is broadly tasked with administering the bankruptcy case. What this means in practice depends greatly on bankruptcy chapter.
There are basically three sources of compensation for a chapter 7 trustee: (1) $61 out of the $306 filing fee the debtor paid to file the case with the bankruptcy court; (2) compensation for making distributions to creditors; and (3) attorney's fees charged against the bankruptcy estate. In a no-asset chapter 7, where the debtor has claimed all of his or her property as exempt and there are no other recoveries to be had for benefit of creditors, only the first source of compensation is available.
We have discussed Trustee in the following posts on our bankruptcy blog:
Every bankruptcy case includes a meeting with the case trustee known by various names including the "Meeting of Creditors", "341 Meeting", and "First Meeting". In many bankruptcy cases, this is the only court-type appearance for individual seeking bankruptcy protection, and is often a point of anxiety for a prospective bankruptcy filer. It doesn't have have to be, and in this post I'll discuss a few misconceptions, some basics, and when the meeting can be a legitimate source of problems.