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

In Washington, a trustee appointed by the court is responsible for handling your debts in a Chapter 7 Bankruptcy. The trustee gathers and liquidates your nonexempt assets, which may include furniture, jewelry, stocks, and real estate, with the proceeds being used to pay off creditors. The trustee will also review your debts to determine which are dischargeable and which are nondischargeable. Dischargeable debts are those that can be wiped out by filing for bankruptcy; these may include credit card bills or medical bills. Nondischargeable debts, on the other hand, are those that cannot be erased; these may include child support payments or student loan debts. The trustee also reviews your income, assets, and financial documents to assess whether you have any excess income or assets that could be used to pay your debts. This information is then used to prepare a report for the court that outlines your financial situation, and the trustee makes a recommendation as to how your debts should be handled. The trustee will also review your bankruptcy petition to make sure it includes the required information and that you are eligible for bankruptcy relief. Once the court approves your bankruptcy petition, the trustee will be responsible for disbursing funds to your creditors according to the court’s order. After all of your dischargeable debts have been paid, the trustee will close your bankruptcy case.

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

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