How does the trustee handle my debts in a Chapter 7 Bankruptcy?

In Iowa, the trustee in a Chapter 7 Bankruptcy handles your debts in a few different ways. The first is to determine if you are eligible for the bankruptcy in the first place. The trustee will review your financial situation and assets to make sure it qualifies and that you are not trying to fraudulently hide any assets. Once the Trustee determines you are eligible, they will then review your debts and assets. The Trustee will attempt to liquidate any non-exempt assets that you have in order to pay creditors. This means that they will try to sell items of value and use the proceeds to pay creditors. The Trustee can also investigate any of the creditors that are listed and decide if the debt should be discharged or not. For example, if the debt is the result of fraud, the Trustee could decide to not discharge the debt. In addition, they may also be able to negotiate with creditors to lower the amount of the debt that needs to be paid in order to receive a discharge. Finally, the Trustee will also determine if you are required to pay any of the debts listed. If you have to pay any of them, the Trustee will collect that money and use it to repay the creditors. Once all of these steps have been completed, the Trustee will submit a final report to the court. The court will then decide if the debt should be discharged or not. If they approve the discharge, the Trustee can then distribute any remaining funds to the creditors.

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How does the trustee handle my debts in a Chapter 7 Bankruptcy?

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