The Chapter 7 trustee is looking for assets.
(A) The Chapter 7 trustee receives $60.00 for each case he is assigned unless a pauper’s affidavit is filed.
(B) The trustee works on a sliding scale commission on all assets he recovers and pays out to the debtor by way of exemptions.
(C) The first thing I look for is a defect in a real estate mortgage.
(1) unrecorded mortgage
(2) faulty legal description
(3) only one owner signs or notary clause only covers one person when there are two owners
(4) faulty notarization clause
(5) counterfeit notary
(6) personal property items:
(1) defective security agreements
(2) equity in automobiles and other assets
(3) bank accounts with large balances not stated on the schedules
(4) jewelry, airplane, preferential transfers and other assets
3. Pre 341 Meeting:
Supply the trustee with the last filed tax return and two month’s pay statements so the trustee receives same at least seven days prior to the 341 meeting. The best practice is to have them in your possession at the time the bankruptcy is filed and immediately upon filing, send them to the trustee who will have been identified by that time.
4. Conduct at the 341 Meeting:
(A) Get there early and meet with your client.
(B) Have out and ready to hand to the trustee the driver’s license or their picture ID and Social Security card.
(C) Have out all additional documents the trustee will request.
(D) Have clients dress appropriately.
(E) In post-341 meeting, promptly supply the trustee with all requested documents.
(F) Promptly reply to trustee’s request.