For instance, Bankruptcy Rule 2004 authorizes the bankruptcy trustee to examine: the acts, conduct, property, liabilities or financial condition of the debtor. any matter which may affect the administration of the bankruptcy estate, or. any matter which may affect the debtor’s right to a discharge.

What does bankruptcy trustee look at?

Most trustees will compare the information provided in the bankruptcy petition and schedules (the paperwork you file with the court) to other financial documents you turn over, such as paycheck stubs, tax returns, and bank statements.

How do trustees discover hidden assets?

The bankruptcy trustees go about finding hidden assets by taking a close look at your debts, as well as doing public record searches, online analysis, tax returns, review reports from former spouses or friends, as well as payroll slips that may show deposits into banks or accounts that you have not listed in your …

How does a bankruptcy trustee look at your bank account?

The bankruptcy trustee will look at your bank account. And, what’s more, the trustees are beginning to dig deeper and deeper into bank records. They tell me that they are finding clues to assets that debtors may have sold, or money that has disappeared without a trace.

How does a trustee work in a Chapter 7 bankruptcy?

In a chapter 7 case, if there are assets to distribute, the trustee contacts creditors and distributes funds. In a chapter 13 case, the trustee also receives your monthly payments and distributes money monthly to creditors. What information does a trustee have access to?

Can a bankruptcy trustee conduct an examinable Affairs investigation?

When this happens the level of cooperation received by the trustee from the bankrupt and related parties is generally not over whelming. To discover the true position it becomes necessary for the trustee to conduct an investigation under S19AA of the Bankruptcy Act An investigation under S19AA extends to the bankrupts “examinable affairs”.

What to do if a bankruptcy trustee suspects fraud?

The matter is then passed along to the United States Attorney or the Federal Bureau of Investigation or other appropriate federal agency for investigation. Like other federal crimes, the United States Attorney prosecutes these cases in the federal courts.