Role of this full Case Trustee
Whenever a chapter 7 petition is filed, the U.S. trustee ( or even the bankruptcy court in Alabama and new york) appoints a unbiased case trustee to manage the truth and liquidate the debtor’s nonexempt assets. 11 U.S.C. В§В§ 701, 704. The trustee will normally file a “no asset” report with the court, and there will be no distribution to unsecured creditors if all the debtor’s assets are exempt or subject to valid liens. Many chapter 7 situations involving debtors that are individual no asset situations. If the instance seems to be an “asset” situation at the outset, unsecured creditors (7) must register their claims with all the court within 3 months following the very very first date set when it comes to conference of creditors. Fed. R. Bankr. P. 3002(c). an unit that is governmental nevertheless, has 180 times through the date the scenario is filed to register a claim. 11 U.S.C. В§ 502(b)(9). When you look at the typical no asset chapter 7 situation, you https://cashcentralpaydayloans.com/payday-loans-co/ don’t have for creditors to register proofs of claim since there is likely to be no circulation.