The trustee can hire an attorney to take depositions, issue subpoenas, and file lawsuits. The trustee can demand that you turn over various documents and if you don’t do so, you can face severe penalties and even criminal action. It is important to have a competent, experienced bankruptcy attorney on your side.
Why does a trustee need an attorney?
An attorney can help you interpret the terms of the trust. A lawyer can help you properly manage the assets of the trust to minimize the potential for complaints or lawsuits brought by unhappy beneficiaries. An attorney can ensure that any tax-related obligations are carried out.
What do trust attorneys do?
A trust attorney is an estate planning professional who can help you create the necessary paperwork to set up a trust for your estate. A trust, unlike a will, allows your surviving family members to avoid the probate process after you pass away. Trusts are especially useful documents for people who have large estates.
What provision of law specifically allows a bankruptcy trustee to hire professionals to assist with the administration of the estate?
California Law Independent of Trust Authorization: Under Probate Code §16247, the trustee has the power to hire persons, including accountants and auditors, even if they are associated or affiliated with the trustee, to advise or assist the trustee in the performance of administrative duties.
Who is the trustee in a Chapter 7 bankruptcy?
When a debtor files a Chapter 7 bankruptcy, the court appoints a bankruptcy trustee to oversee and administer the case.
Why does a bankruptcy trustee hire an attorney?
In many situations, the Trustee will hire an attorney to represent the interest of the bankruptcy estate. It is nothing very unusual. Here, I would suspect that the trustee is seriously considering filing a denial of discharge proceeding against the debtor, which is a very serious sanction.
What happens if you don’t cooperate with a bankruptcy trustee?
And if you don’t cooperate, the trustee can obtain an order from the court to force the issue. If you have nonexempt property that isn’t worth very much or would be cumbersome for the trustee to sell, the trustee can—and often will— abandon the property, which means you get to keep it.
What do you have to disclose to a bankruptcy trustee?
In these documents, you’ll disclose personal and financial information about your debts, property, income, and the state of your financial affairs. Also, you’ll likely have to send the bankruptcy trustee things that will substantiate the information you provide in your paperwork, such as paystubs, tax returns, and information about your assets.
