Who are the Minnesota Panel Bankruptcy Trustees, and What Do They Do?

January 27, 2012 By

A common question from debtors filing bankruptcy is who are the Minnesota Trustees and what do they do?

There are two types of trustees. The first is a employee of the federal government working for the Department of Justice and are know as a United States Trustee. The second are private individuals called a Panel Trustee. Typically panel trustees in Minnesota are attorneys who practice or practiced bankruptcy law. When an opening presents itself attorneys will apply and be appointed (hired) by the Department of Justice. The U.S. Trustee is tasked with oversight of the panel trustee and the bankruptcy case. The Panel Trustee is the representative of the estate and is charged with the task of ensuring that the creditors receive fair repayment.

In most cases creditors receive no payment, this is also known as a zero asset bankruptcy cased. In zero asset cases the panel trustee is paid a flat fee of approximately $65.00 per case. Obviously that is not enough to pay their bills. In those cases with assets: greater than the exemptions; or which are not disclosed; or which are transferred to a insider (friend or family member) the trustee is also paid on a sliding fee scale. The typical scale is 25% for the first $5000.00 recovered, 10 % for the $5000.01 not to exceed $50,000.00, 5% for the $50,000.01 not to exceed $1,000,000.00. This creates an incentive for the trustee to investigate the case thoroughly. Because trustees are very adept at finding assets the worst thing you can do is transfer funds to an insider (friends or family) or try to hide assets. Doing either of these things converts a potential exempt asset to a nonexempt asset. If you are contacted by a Minnesota Trustee for any reason contact an attorney.

The U.S and Panel trustees in the twin cities and the rest of MN are:Jazmine Keller, Kyle Carlson, Bridget Brine, Paul Bucher, Julia Christians, Michael Dietz, Gene Doeling, John Hedback, Michael Iannacone, Mary Jo Jensen-Carter, Robert Kanuit, Dorraine Larison, Brian Leonard, Dwight Lindquist, Nauni Manty, Timothy Moratzka, Charles Ries, Randall Seaver, Joseph Stermer, John Stoebner, Patti Sullivan, David Velde

Filed Under: Minnesota Chapter 11, Minnesota Chapter 13, Minnesota Chapter 7 Tagged With: , , , , , , , , , , ,

Accuracy and Honesty in Bankruptcy

May 13, 2010 By

In order to have the bankruptcy process go smoothly both the attorney and client have to be on the same page in regards to accuracy of bankruptcy schedules.  It is imperative that clients take an active role in reviewing the bankruptcy petition that is to be filed with the court.   The most important things for a client to review are:

  1. Did I list all my assets
  2. Did I list all my debts including debts to relatives
  3. Is my income accurate
  4. Did I make any payments to friends or relatives or give away any property
  5. Did I double check the information that is going to be filed with the court.

It is also important for a client to be honest when filling out the bankruptcy forms.  If a client has any questions about whether the information is correct or on what should be listed on the schedules they should ask the attorney.  I cannot stress the importance of honesty when filing a bankruptcy, nothing with draw the anger of a trustee faster than a client who is dishonest.  If you are dishonest it will also draw the ire of your attorney, who cannot give you good advice, if you do not tell him or her the truth regarding your situation.  The bankruptcy system is designed to give honest debtors a fresh start, if you are not honest you put your fresh start is jeopardy.

Filed Under: Minnesota Chapter 7 Tagged With: , , ,