Chapter 7 trustee · Beverly Hills
What the Chapter 7 Trustee Looks For
The Chapter 7 trustee looks for property that is not protected, money you paid out before filing, and anything you left off your papers. Most cases have nothing for the trustee to collect, and the trustee simply closes the file. Call (310) 362-9071 to find out what a trustee would see in your case before you file.
- A trustee is appointed in every Chapter 7 case
- The trustee is not your lawyer and does not work for any one creditor
- You meet the trustee once, at the 341 meeting
At a glance
The trustee's job in a Chapter 7 case
The Chapter 7 trustee is a private person appointed to look after your bankruptcy estate. The trustee's job is to find property that can be sold for your creditors.
When you file, almost everything you own becomes part of the estate. Exemptions then pull back what the law lets you keep. The trustee checks whether your exemptions are correct and whether anything is left over. You can read how that works on our bankruptcy exemptions page.
The trustee also reviews your income, your expenses and your recent money moves. If something looks wrong, the trustee can ask for more papers, object to your exemptions or refer the case to the U.S. Trustee. The trustee does not decide your discharge. The court does. But the trustee's report has a large effect on how smoothly your Chapter 7 bankruptcy goes.
Documents the trustee asks for
The trustee compares your bankruptcy papers to your own records. Expect to provide these before your meeting:
- Photo ID and proof of your Social Security number. You show these at the meeting.
- Your most recent federal tax return. It is due to the trustee at least 7 days before the meeting. Many trustees also ask for the prior year.
- Pay stubs. These cover the 60 days before you filed, and the trustee checks them against your means test.
- Bank statements. The trustee wants the statement that covers your filing date, and often a few months before it.
- Other records as needed. Car titles, loan statements, business records, a lease or a divorce judgment, depending on your case.
Missing papers are one of the most common reasons a meeting gets continued to a later date.
What to watch for: red flags the trustee looks for
Trustees read bank statements line by line. These items draw the most questions:
- Payments to family within 1 year. Paying back a parent, sibling or other relative can be undone. Payments to friends and other creditors are looked at for the 90 days before filing. The trustee can sue the person you paid to get the money back for your creditors.
- Large payments to other creditors within 90 days. Paying one creditor much more than the others right before filing can also be recovered.
- Transfers within 2 years. Giving away property, putting a car or house in someone else's name, or selling for far below value can be reversed. California law can let the trustee look back even further.
- Recent large purchases. Buying luxury goods or taking cash advances shortly before filing can lead a creditor to claim the debt should not be wiped out.
- Unlisted assets. A forgotten bank account, a crypto wallet, a claim against someone, or an inheritance you expect can all matter. Leaving them off can cost you your discharge.
- Tax refunds. Part of a refund for the year you file may belong to the estate. See how we plan around wages, tax refunds and cash on filing day.
None of these are crimes on their own. Most have an honest reason. The goal is to spot them before you file, so they can be timed, explained or protected.
No-asset cases and asset cases
Most Chapter 7 cases are no-asset cases. That means everything you own is protected, so the trustee has nothing to sell.
| No-asset case | Asset case | |
|---|---|---|
| What it means | All property is exempt or has no equity | Some property has value the exemptions do not cover |
| What the trustee does | Files a report saying there is nothing to collect | Collects and sells the property, or lets you buy it back |
| Creditors | Usually told not to file claims | File claims and share in what is collected |
| Your discharge | Usually on the normal schedule | Usually on the normal schedule, while the case stays open longer |
In an asset case, you can sometimes pay the trustee the value of the item and keep it. We look at these options with you during the Chapter 7 timeline planning.
How to prepare for the trustee
- List everything. Include accounts with small balances, money owed to you and property held by others.
- Gather records early. Tax returns, pay stubs and bank statements should match your papers.
- Tell us about past transfers. Gifts, loan repayments to family and sales in the last few years all matter.
- Practice the questions. Our 341 meeting of creditors guide lists what the trustee usually asks.
- Respond fast. If the trustee asks for more papers after the meeting, send them by the deadline.
If a trustee or creditor files a lawsuit inside your case, see our page on adversary proceeding defense.
What it costs
- Chapter 7: flat attorney fee from $1,200, plus the $338 court filing fee
- Chapter 13: attorney fee quoted in writing, and part of it can be paid through the plan
- Payment plans are available, and the first consultation is free
More on Chapter 7 bankruptcy
- Chapter 7 bankruptcy in Beverly Hills
- California Median Income Figures for the Means Test
- What Debts Are Wiped Out in Chapter 7
- Debts Chapter 7 Will Not Discharge
- Can I Keep My Car in Chapter 7?
- Can I Keep My House in Chapter 7?
- The Chapter 7 Timeline, From Filing to Discharge
- What the Chapter 7 Trustee Looks For
- Filing Chapter 7 With No Income or Between Jobs
- Filing a Second Chapter 7: The Eight-Year Rule
- Chapter 7 for Married Couples: Filing Alone or Together
- What Happens at the 341 Meeting of Creditors
- Redeeming a Car in Chapter 7
- Means test evaluation
- Reaffirmation agreements
Chapter 7 trustee questions
Is the Chapter 7 trustee on my side?
No, the Chapter 7 trustee is not on your side or on any one creditor's side. The trustee acts for all creditors as a group. Your attorney is the person who represents you.
Will the Chapter 7 trustee take my house or car?
The Chapter 7 trustee only takes property that has value beyond your exemptions and any loans against it. Most people keep their home furnishings, clothes and a car. We check your equity before you file.
Can the trustee get back money I paid my parents?
Yes, the trustee can often get back money you paid to your parents or other relatives within 1 year before filing. The trustee goes after the relative, not you. Timing your filing can sometimes avoid this.
How does the trustee find unlisted assets?
The trustee finds unlisted assets through your bank statements, tax returns, public records and questions under oath. Creditors and ex-spouses sometimes tip off the trustee too. Listing everything is the safe course.
Does the trustee get paid from my case?
Yes, the trustee gets paid from your case in a small way. Part of your court filing fee goes to the trustee. In an asset case, the trustee also gets a percentage of what is collected.
Free consultation
See your case the way a trustee will
Call (310) 362-9071 or send the form. We review your records with you before filing so there are fewer surprises at the trustee's desk.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.