Bankruptcy Pre Discharge Course
The court- appointed trustee in charge of your bankruptcy has got broad powers of reviewing all your bank account’s financial records, while your bankruptcy is still in process. Typically, the trustee can decide to check all your bank accounts each time he or she feels a need, although there are some several key points in your bankruptcy when all your accounts can definitely be under review. This write up will focus on discussing about the various situations that will lead to bankruptcy trustees checking your account.
How Often Bankruptcy Trustees will Check your Accounts
* In Case of Bankruptcy Liquidation:
In case of bankruptcy liquidation, the bank trustee who’s in charge of your bankruptcy can review the balance in all your bank accounts in case the court happens to approve all your bankruptcy. In case of a consolidated credit, the trustees are often allowed to review people’s account balances to ensure that the court seizes all the non- exempt funds. Most state’s laws allow people to exempt a varying cash amount in their accounts, with the remaining cash amounts surrendered to the creditors to pay their debts.
* Reviewing Financial Documents:
The trustee who’s in charge of your bankruptcy can review any of your submitted financial documents. He or she does this to make sure it is accurate before making any decision concerning your bankruptcy filling. Basically, this includes reviewing your bank account’s balances you’ve listed in your paperwork.
The trustee also may inquire with any financial institution about the other bank accounts bearing your name to make sure you are not withholding any information concerning your other finances. In case the trustee happens to discover any bank account that you didn’t list in your bankruptcy paperwork, he or she can force you to add that account to your bankruptcy filing. Also, he or she can decide to recommend the court to dismiss your case.
* Operating your Business:
Incase of bankruptcy, the court can grant your bankruptcy trustee temporary powers to operate all your businesses. This normally happens incase the court believes that continued operation can end up benefiting your creditors.
This places your bankruptcy trustee to be in charge of your business accounts and thus locks you out of controlling your finances till the court returns the businesses to you. Also, you can retain your businesses in case your bankruptcy trustee conducts a liquidation of your firm’s assets.
* In Case of a Bankruptcy:
In case of a bankruptcy, you’ll be required to make regular payments to the bankruptcy trustee in charge of your case. These payments will be part of your court- approved consolidated debt repayment plan. Generally, the trustee can conduct periodic reviews of your bank accounts, including your personal and business accounts. The periodic reviews look if you’ve got sufficient money to continue making payments. Also, the trustee can review your accounts to ensure you are not hiding assets from your creditors and court.
Last but not the least; in case your bankruptcy trustee discovers any hidden assets, he or she can force you to add them in your consolidated debt repayment plan.