Portland Bankruptcy Attorney

Bankruptcy Lawyer Portland Or

Portland Bankruptcy Attorney
CALL 503-380-7822
email-iconmap-marker
  • Home
  • Bankruptcy
    • Personal Bankruptcy
    • Business Bankruptcy
    • Foreclosure
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
  • Estate Planning
  • About
  • Contact

Who Is That U.S. Trustee Lurking in the Bankruptcy Shadows?

January 7, 2014 by Chris Kane

The United States Trustee is the other trustee—not the Chapter 7 or 13 one you see but rather one who works in the background of your case.

Who the U.S. Trustee is Not

If you are about thinking about filing, or have already filed, a Chapter 7 “straight bankruptcy” case, or a Chapter 13 “adjustment of debts” one, you’ve likely heard who your bankruptcy trustee is what he or she does. In a Chapter 7 case, your trustee reviews your documents filed at the bankruptcy court, and talks with you for a few minutes at the “meeting of creditors.” This trustee’s primary role is to determine if you own anything that is not “exempt” that you have to turn over to your creditors. In a Chapter 13 case, your trustee determines whether the payment plan we propose meets legal requirements, works with us to make any changes, and when necessary formally objects to the plan. Once a plan is approved by the bankruptcy judge, you send your monthly plan payments to this trustee, who then distributes them to your creditors as laid out in the plan.

Part of the U.S. Dept. of Justice

But the United States Trustee has an altogether different role. This special kind of trustee works mostly in the background, although occasionally can cause you problems.  So it’s important knowing his or her role.

The U. S. Trustee (UST) is part of the United States Department of Justice, and has two primary roles. It:

1) helps the Bankruptcy Court administer bankruptcy cases, and

2) enforces bankruptcy law.

Administrative Role

In its administrative role, the UST appoints and supervises the Chapter 7 “panel trustees” (usually a number of them in each jurisdiction) and the Chapter 13 trustees (usually one or two “standing trustees). The UST oversees bankruptcy cases for administrative efficiency, and reviews and can object to fees charged by attorneys and other professionals. In Chapter 11 business reorganizations the UST has a much more active administrative role.

Enforcement Role

In its enforcement role, in the relatively few cases that the UST gets noticeably involved, he or she tends to do so in one of two ways:

1) In a Chapter 7 case, object to you being eligible based on your income and allowed expenses, and potentially other factors; the UST could try to either “dismiss” (throw out) or “convert” your case into a Chapter 13 one.

2) In any kind of case, accuse you of presenting inaccurate information on your bankruptcy documents or while under oath during your hearing with the Chapter 7 or 13 trustee.

Avoid Running Afoul of the U.S. Trustee

Most of the time steering clear of the UST’s enforcement arm is not difficult. Just do the following:

As for preventing your Chapter 7 case from being challenged as not being eligible for Chapter 7, this is mostly a matter of meeting the “means test,” a potentially complex set of income and expense disclosures. Avoid this kind of challenge by working closely with your attorney before your case is filed to make sure the detailed means test information is presented accurately, and that you clearly meet this test.

As for avoiding allegations of inaccuracy or incompleteness, again it’s mostly a matter of appropriate preparation. Be sure you understand the questions asked of you by your attorney and/or his or her staff, or that are on any forms you fill out. When in doubt, always ask for clarification. Diligently provide your attorney with the paperwork and information needed so that all of the documents filed at the Bankruptcy Court are accurate and complete.

If You Hear from the U.S. Trustee

If after all this you and your attorney still hear from the UST, most of the time the issue raised can be resolved favorably. It’s crucial to address and respond quickly to any contact from the UST. Besides simply being courteous, you gain credibility by being cooperative. Be aware also that the UST must do his or her work within the constraints of some quick legal deadlines, and so will be compelled to get aggressive quickly if you and your attorney don’t respond right away

Conclusion

You and your attorney both want your bankruptcy case to go as smoothly as possible. The best way to do that is to be honest and thorough with your attorney as your bankruptcy papers are prepared. And then in the unusual event that you hear from the UST during your case, don’t panic and avoid the matter, but rather immediately contact your attorney so that it can be addressed and resolved quickly.

Filed Under: Bankruptcy Procedure

Welcome to the Portland Bankruptcy Law Blog

I'd like to help you overcome your financial problems. One good way to start is to provide you with accurate and timely information about the bankruptcy laws. I do that here through informative blog posts, with a new one published here every week. I've been doing this for years so there is a wealth of information for you here.

But please be aware that since you are unique person you need a highly personalized solution to your challenges. That requires the analysis and advice of a conscientious and highly experienced attorney. That's really the only sensible way to get the benefit of the many powerful and effective remedies that the law provides.

So I hope the information provided here is helpful to you. Please contact me for guidance to a much better place:

503-380-7822

Recent Posts

  • No link found between bankruptcy and employment prospects
  • Creditor found in violation of automatic bankruptcy stay
  • What are the short- and long-term credit impacts of bankruptcy?
  • Bankruptcy Attorney Portland, Or | Bankruptcy Lawyer Oregon | Christopher J. Kane P.C.

Categories of Blog Posts

  • Portland Bankruptcy Attorney
  • Personal Bankruptcy
  • Business Bankruptcy
  • Stop Foreclosure
  • Chapter 7 Bankruptcy
  • Chapter 13 Bankruptcy
  • Filing Bankruptcy in Oregon
  • Testimonials
  • FAQ
  • Blog

FREE CONSULTATION

GET A FREE CONFIDENTIAL CONSULTATION THIS MONTH.
*Please see below.

CONTACT

Christopher J. Kane, P.C.

Address: 2207 NE Broadway, Suite 100, Portland OR 97232

Phone: 503-380-7822

Email: chris@ckanelaw.com


We are a debt relief agency.

We proudly help people understand their options and, if appropriate, help them file for bankruptcy relief under the Bankruptcy Code.

DIRECTIONS

CONNECT

  • Email
  • Facebook
  • LinkedIn
  • Twitter
Avvo - Rate your Lawyer. Get Free Legal Advice.
Best Bankruptcy lawyers in Portland
Best Bankruptcy Lawyers in Portland

* Using this form, or email, for communicating with us does not establish an attorney-client relationship, until we do that in writing. So please do not send confidential or time-sensitive information through this form or by email. You affirm that you have read and understand this disclaimer.
CAUTION: This website is to provide visitors with basic information about our firm, and information about how to contact us. Every situation is different, and no information on this website is legal advice on any specific question. You should not act on any of the information without first conferring with an attorney licensed in your jurisdiction. No attorney-client relationship or privilege is formed by visiting this site or by unsolicited email. Therefore, initial emails should not contain any confidential information. We may already represent parties adverse to you and cannot advise or represent you until we check for conflicts. We are licensed only in Oregon and offer our services only to those doing business in Oregon, unless we are associated with local counsel in accordance with other states laws. The applicable laws may have changed after the information on this website was published. While effort is made to keep the information current, you should not presume that all information is up to date. You must confer with an attorney to be sure you have current information.
Copyright © 2021 · Christopher J. Kane Attorney at Law · 503-380-7822 · Designed by Artizon Digital