When you file a Chapter 7 or Chapter 13 bankruptcy case, a Trustee is appointed to administer your case. This person is an independent contractor who works for the Office of the U.S. Trustee in the Department of Justice. Although they are commonly attorneys, there is no requirement that you be admitted to practice law to do the job.
Administering a case means reviewing the bankruptcy petition and all supporting paperwork filed with the Bankruptcy Court to see that it is properly completed according to the Bankruptcy Code requirements.
Then the Trustee must conduct an examination of the persons filing bankruptcy to determine background information relevant to the case. The examination will also include production of paperwork documenting the information included on the bankruptcy petition.
In a Chapter 7 case, the goal is to discover non-exempt assets (items you are mot allowed to keep). The Trustee will recover that property either from the person filing bankruptcy or from others who are holding those items. Then, that property is sold and the money is used pay the creditors who file a claim with the Court. The Bankruptcy Trustee gets paid the sum of $60 for every case assigned as well as a percentage of any property that is recovered in the case.
In a Chapter 13 case, the goal is determine the maximum amount that you can pay each month in a payment plan to your creditors. Your income and expenses are carefully reviewed so that a proposed plan is realistic and fair. There, the compensation is a percentage of your monthly payment up to a maximum of 10% of each payment.
In the states of Alabama and North Carolina, the persons reviewing each petition are called Case Administrators, but their function is exactly the same. Although the process of dealing with the Trsutee can be intimidating, there is nothing to fear as long as you are honest and complete in disclosing your finances.
About Eugene S. Melchionne, Connecticut Bankruptcy Lawyer
Mr. Melchionne is a graduate of The University of Connecticut (BA 1977) and Drake University School of Law (JD 1980) where he received the American Jurisprudence Award for academic excellence. Most recently, Mr. Melchionne was appointed to the Commission on Mortgage Foreclosures by Connecticut Supreme Court Chief Justice Chase Rogers to recommend changes to procedures to protect consumers in the Connecticut Courts in foreclosure cases. Since 1980, Mr. Melchionne has focused his practice in the areas of consumer bankruptcy, workouts and foreclosure defense in distressed real estate markets, real estate transactions, condominium law, commercial litigation, business organizations and probate. Prior to opening his office in 1990, Mr. Melchionne was the Vice President of the Waterbury Credit Bureau and was associated with Grady & Riley in Waterbury, Connecticut and DiPietro, Kantrovitz & Brownstein, P.C. in New Haven, Connecticut. From 1990-1998, Mr. Melchionne was of counsel to Bender & Anderson handling that firm's complex litigation and trials. In addition to his practice, Mr. Melchionne was an adjunct professor at the American Institute of Banking and Teikyo Post University teaching bankruptcy, real estate, commercial and consumer law. Mr. Melchionne also advised the Corporation Counsel's office for the City of Waterbury on bankruptcy and foreclosure matters and mentored junior attorneys in that office. Mr. Melchionne was appointed State Chair for the National Association of Consumer Bankruptcy Attorneys (NACBA). He acts as liaison between the national organization and Connecticut attorneys who are members of the Association.
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