When you file for bankruptcy, a “Trustee” is appointed to your case.
It’s essential to understand the role of the trustee and who they “work” for.
Although the court appoints the trustee, the trustee’s job is to get as much property as possible to be sold and the proceeds distributed equitably to your unsecured creditors, according to “priority” rules — determining who gets paid first — under federal and state law.
Almost all of your dealings with the bankruptcy court will be with the trustee assigned to your administering your case, not the bankruptcy judge.
The bankruptcy judge is only there to rule on disputed legal issues and issue your “discharge” order — the piece of paper that officially cancels your debts upon completing a successful filing — which is the ultimate goal of bankruptcy.
What does the Trustee do in a Chapter 7 case?
Bankruptcy Code § 323 states that the trustee is the representative of the “bankruptcy estate” with the capacity to sue and be sued.
The Bankruptcy Code defines the trustee’s duties and obligations:
- Section 704 defines the statutory duties of the trustee in a Chapter 7 bankruptcy case, and, under § 704, the primary task of the trustee is to “reduce to money the property of the estate for which such trustee serves” that is: to “liquidate” the assets and distribute the proceeds to your creditors. (Note this the job in Chapter 7 (“liquidation”) bankruptcy is different than it is in Chapter 13 (“pay over five years”) bankruptcy.
- Other relevant duties include ensuring that the debtor performs their intention (regarding secured debts) as specified in § 521(a)(2)(B) (See debtor’s “statement of intention” as provided in Form ____),
- investigate the financial affairs of the debtor (see, “What is a 341 meeting?”),
- and “if advisable, oppose the discharge of the debtor.” (see “What kinds of debts can be discharged in bankruptcy?” and “Things that might make your bankruptcy case fail.")
How Are Trustees Paid?
Bankruptcy Code § 326 says that a trustee’s compensation is based upon a percentage of the property of the estate the trustee administers. As a result, a trustee has a financial incentive to maximize the property of the estate. Consequently, discussions or disputes with a Chapter 7 trustee will primarily focus on what is property of the estate.
How Trustees Can Increase the size of the “Bankruptcy Estate.”
The whole point of bankruptcy is ensuring everyone gets their rightful share of the “pie” when there’s not enough pie. Or, to put it a more legal way: to provide an orderly distribution of available assets (“the pie”) to all creditors based on the priority outlined in federal bankruptcy law.
The trustee’s job is to make that “pie” as large as legally possible. What follows is a list of ways they can try to do that.
Undoing “Preferential Transfers” That You Made Before Filing
One tool the trustee has is the authority to undo any “preferential transfers.” That is, any money or property you transferred to someone else just before (generally up to 180 days before) filing bankruptcy.
Under this power, the trustee will be very interested in undoing any recent repayments of debts you made to your relatives or friends just before you filed for bankruptcy, as these are called a “preference.”
The trustee can reverse these transactions (i.e., claw the money back) and reclaim it for the “bankruptcy estate” because, by repaying these people before just going bankrupt, you have “preferred” some people you owe money to over others -- and bankruptcy does not allow this, because bankruptcy law has strict rules about who gets priority when it comes to claiming any available assets you may have.
Wiping out invalid liens on your property to increase equity to be distributed to creditors
Suppose you own a house with a second mortgage or have several liens on your property. In that case, the trustee may look to “void” some of those liens if doing so will increase your home equity to the point that it is no longer fully protected by applicable homestead exemption laws.
Who Are the Trustees for Texas Northern District Bankruptcy Court?
To find the contact information for trustees in your state who handle Chapter 7 cases:
Click here for a list of Chapter 7 trustees for Texas from the US Department of Justice.
Once you bring up this list, find the Texas trustees for the Texas Northern District Bankruptcy Court.
TEXAS
- Note: The individuals listed are private parties, not government employees.
-
TRUSTEE(S) COVERING THE EASTERN DISTRICT OF TEXAS
- Diane S. Carter
60 North Central Expressway,
Suite 101
Plano, TX 75074
E-mail: dsbarron@rbarronlaw.com
Phone: (972)422-8377
- Michelle H. Chow
P.O. BOX 601389
Dallas, TX 75360 -1389
E-mail: mhchow@swbell.net
Phone: (214)521-6627
Fax: (214)320-2966
- Christopher J. Moser
2001 Bryan Street, Suite 1800
Dallas, TX 75201
Phone: (214)880-1805
- Linda S. Payne
11700 Preston Road
Suite 660-667
Dallas, TX 75230
E-mail: linda@paynetrustee.com
Phone: (214) 558-7796
- Mark A. Weisbart
10501 N. Central Expy., suite 106
Dallas, TX 75231
E-mail: mweisbart@haywardfirm.com
Phone: (972) 755-7100
- Stephen Joseph Zayler
123 E. Lufkin Avenue
Lufkin, TX 75901
Phone: (936)634-1020
- Diane S. Carter
-
TRUSTEE(S) COVERING THE NORTHERN DISTRICT OF TEXAS
- Shawn K. Brown
P.O. Box 93749
Southlake, TX 76092
E-mail: shawn@browntrustee.com
Phone: (817) 348-0777
- Anne E. Burns
900 Jackson Street
Suite 570, Founders Square
Dallas, TX 75202
Phone: (214) 573-7343
- James W. Cunningham
6412 Sondra Drive
Dallas, TX 75214
Phone: (214)827-9112
- Marilyn D. Garner
2007 East Lamar Boulevard, Suite 200
Arlington, TX 76006
Phone: (817) 505-1499
Fax: (817) 549-7200
- Areya Holder Aurzada
901 Main Street
Suite 5309
Dallas, TX 75202
E-mail: areya@holderlawpc.com
Phone: (972) 438-8800
Fax: (972) 438-8825
- Myrtle L. McDonald
3305 66th Street, Suite 3
Lubbock, TX 79413
E-mail: mmcdonald@epitrustee.com
Phone: (806)792-0056
Fax: (806)589-0790
- Jeffrey H. Mims
900 Jackson St., Suite 560
Dallas, TX 75202
E-mail: jffm@chfirm.com
Phone: (214) 210-2913
- Harvey L. Morton
P.O. Box 10305
Lubbock, TX 79408
E-mail: hlmortonlaw@aol.com
Phone: (806)762-0570
- R. Newhouse
401 Century Pkwy
Unit 715
Allen, TX 75013
E-mail: Rn7trustee@gmail.com
Phone: (469) 777-6560
- Laurie Dahl Rea
777 Main Street, Suite 1550
Fort Worth, TX 76102
E-mail: lrea@forsheyprostok.com
Phone: (817) 877-4224
- Diane G. Reed
501 N. College Street
Waxahachie, TX 75165
Phone: (972) 938-7334
- Kent D. Ries
4211 I-40 West, Suite 101
Amarillo, TX 79106
Phone: (806)242-7437
- Scott M. Seidel
6505 West Park Boulevard, #357
Suite 306
Dallas, TX 75093
E-mail: scott@scottseidel.com
Phone: (214) 234-2503
- Daniel J. Sherman
509 N. Montclair Avenue
Dallas, TX 75208
Phone: (214)942-5502
- John D. Spicer
P.O. Box 820009
North Richland Hills, TX 76182
E-mail: jdspicer@chfirm.com
Phone: (214) 573-7331
Fax: (214) 573-7399
- Behrooz P. Vida
3000 Central Drive
Bedford, TX 76021
E-mail: Behrooz@vidalawfirm.com
Phone: (817) 358-9977
- Robert Yaquinto, Jr.
509 N. Montclair Avenue
Dallas, TX 75208
Phone: (214)942-5502
- Shawn K. Brown
-
TRUSTEE(S) COVERING THE SOUTHERN DISTRICT OF TEXAS
- Allison Davison Byman
7924 Broadway, Suite 104
Pearland, TX 77581
E-mail: adb@bymanlaw.com
Phone: (281) 884-9269
- Catherine S. Curtis
P. O. Box 720788
McAllen, TX 78504
E-mail: ccurtis@pulmanlaw.com
Phone: (956) 467-1000
Fax: (956) 331-2815
- Eva S. Engelhart
7700 San Felipe, Suite 550
Houston, TX 77063
E-mail: eengelhart@rossbanks.com
Phone: (713) 626-1200
Fax: (713) 623-6014
- Christopher R. Murray
602 Sawyer Street, Suite 400
Houston, TX 77007
E-mail: Christopher.murray@jmbllp.com
Phone: (832) 529-3027
- Janet S. Northrup
Total Plaza
1201 Louisiana, 28th Floor
Houston, TX 77002
E-mail: jsn@hwa.com
Phone: (713) 328-8233
Fax: (713) 351-0333
- Ronald J. Sommers
2800 Post Oak Blvd., 61st Floor
Houston, TX 77056
E-mail: rsommers@nathansommers.com
Phone: (713)960-0303
Fax: (713)892-4800
- Randy W. Williams
7924 Broadway, Suite 104
Pearland, TX 77581
E-mail: rww@bymanlaw.com
Phone: (281) 884-9262
- Allison Davison Byman
-
TRUSTEE(S) COVERING THE WESTERN DISTRICT OF TEXAS
- Ronald E. Ingalls
P.O. Box 2867
Fredericksburg, TX 78624 -1927
E-mail: ron@ingallstrustee.com
Phone: (830) 321-0878
Fax: (830) 321-0913
- J. Patrick Lowe
2402 East Main Street
Uvalde, TX 78801
E-mail: pat.lowe.law@gmail.com
Phone: (830) 407-5115
- Randolph N. Osherow
342 W. Woodlawn, Suite 100
San Antonio, TX 78212 -3314
E-mail: rosherow@hotmail.com
Phone: (210)738-3001
Fax: (210)737-6312
- Jose C. Rodriguez
342 Woodlawn, Suite 103
San Antonio, TX 78212
E-mail: jrodlaw@sbcglobal.net
Phone: (210)738-8881
Fax: (210)738-8882
- Ron Satija
P.O. Box 660208
Austin, TX 78766
E-mail: info@satijatrustee.com
Phone: (512) 900-8223
Fax: (512) 900-8224
- James E. Studensky
3912 W. Waco Drive
Waco, TX 76710
E-mail: jstudensky.trustee@outlook.com
Phone: (254) 776-9630
Fax: (254) 296-0190
- Johnny W. Thomas, Jr.
1153 E. Commerce
San Antonio, TX 78205
E-mail: johnny@johnnythomaslaw.com
Phone: (210)226-5888
- Ronald E. Ingalls