3/08
Is the trustee going to come to my house?
If you'd like to invite them over, they might. But trustees do not normally make home calls.
The trustee in any bankruptcy case is obligated to investigate the assets -- the property -- and affairs of the debtor. That means they have the right, when you file a case, to inspect your property.
But the system relies -- depends -- on the honor system. You have to tell the truth, under oath, about what property you own -- everything. Like any honor system, the punishment can be harsh for failing to live up to the standards -- lying to the bankruptcy court and trustee is a federal crime.
And the system works very well. Most -- almost everyone -- entering bankruptcy try to tell the complete truth. And they do their best to disclose everything. This has historically kept the costs very low because no one has to run up a lot of expenses going around town looking into everyone's home. They don't want to embarrass or intrude on your private life any more than you want them walking in on your dinner.
So while a trustee can come to your home and inspect your property, they will only do it when they suspect something is wrong, confusing or incomplete about your testimony. They have a reason to think you haven't told the complete truth or what you have told them just doesn't make a lot of sense. A doctor with a six-figure income is likely to have more valuable household goods than the low-income mechanic down the street, for example. If the doctor says he does not, the trustee will reasonably want an explanation why. Wouldn't you?
Experienced attorneys will be aware of the issues which might cause a trustee to ask further questions or need more documentation. The crucial thing is to be completely honest with your attorney and with the trustee.
The trustee in any bankruptcy case is obligated to investigate the assets -- the property -- and affairs of the debtor. That means they have the right, when you file a case, to inspect your property.
But the system relies -- depends -- on the honor system. You have to tell the truth, under oath, about what property you own -- everything. Like any honor system, the punishment can be harsh for failing to live up to the standards -- lying to the bankruptcy court and trustee is a federal crime.
And the system works very well. Most -- almost everyone -- entering bankruptcy try to tell the complete truth. And they do their best to disclose everything. This has historically kept the costs very low because no one has to run up a lot of expenses going around town looking into everyone's home. They don't want to embarrass or intrude on your private life any more than you want them walking in on your dinner.
So while a trustee can come to your home and inspect your property, they will only do it when they suspect something is wrong, confusing or incomplete about your testimony. They have a reason to think you haven't told the complete truth or what you have told them just doesn't make a lot of sense. A doctor with a six-figure income is likely to have more valuable household goods than the low-income mechanic down the street, for example. If the doctor says he does not, the trustee will reasonably want an explanation why. Wouldn't you?
Experienced attorneys will be aware of the issues which might cause a trustee to ask further questions or need more documentation. The crucial thing is to be completely honest with your attorney and with the trustee.
