Frequently asked questions
Can the bankruptcy trustee take my car?
Only if your car has equity above your state's vehicle exemption amount. If you owe more on the car than it is worth (negative equity), or if your equity is within the exemption limit, the trustee cannot take it. Check your state's exemptions at bankruptcyexemptionsbystate.com.
Can the trustee take money from my bank account?
Money in your bank account on the date you file is property of the estate under 11 U.S.C. § 541. If the amount exceeds applicable exemptions, the trustee can claim it. Many attorneys advise using excess cash for necessary expenses (rent, utilities, food) before filing.
Can the trustee look at my bank statements?
Yes. Trustees routinely request 2 to 6 months of bank statements. They look for undisclosed income, large cash transactions, preferential payments, and transfers to family members. Some trustees request statements going back 2 years or more.
How is the trustee paid?
Chapter 7 panel trustees receive $60 per no-asset case, plus a percentage of any assets distributed (up to 25% of the first $5,000 under 11 U.S.C. § 326). Chapter 13 standing trustees receive a percentage (7-10%) of all plan payments they receive.
Can I fire the trustee?
No. You do not hire the trustee and you cannot fire them. The trustee is appointed by the U.S. Trustee program. If you believe the trustee is acting improperly, you can file a complaint with the U.S. Trustee's office or raise the issue with the court.
What if the trustee objects to my exemptions?
You have the right to respond and present evidence. The court will schedule a hearing. Many exemption disputes are resolved by agreement before trial. See our trustee objections guide for details.
Does the trustee work for the judge?
No. The trustee is an officer of the estate, appointed by the U.S. Trustee (an arm of the Department of Justice). The judge is a separate, neutral judicial officer. See our trustee vs judge comparison.
What happens if the trustee finds hidden assets?
If you failed to disclose assets, the trustee can seek denial of your discharge under 11 U.S.C. § 727(a)(2). Concealing assets in bankruptcy is also a federal crime under 18 U.S.C. § 152, punishable by up to 5 years in prison and a $250,000 fine.
Can the trustee object to my Chapter 13 plan?
Yes. The Chapter 13 trustee can object to plan confirmation if the plan does not meet the requirements of 11 U.S.C. § 1325 -- including the best interests of creditors test, the projected disposable income test, and the good faith requirement.
How long after the 341 meeting does the trustee have to act?
For exemption objections: 30 days after the 341 meeting concludes. For discharge objections: 60 days after the first date set for the 341 meeting. For avoidance actions (fraudulent transfers): generally 2 years after the order for relief. These deadlines are enforced strictly.