How to Really Make A Bankruptcy Trustee Mad

              Luckily, I have never had a client get what I would consider to be the 3rd degree from a bankruptcy trustee the Southern District of Indiana, Indianapolis division.  However, every bankruptcy case requires one hearing that is in front of a bankruptcy trustee and lawyers see many hearings commence in which the debtor is represented by other counsel.  What I am saying here is that I see a lot of bankruptcy hearings in Indianapolis.....and on occasion I have seen a trustee get really mad.

              I am not writing about this to scare anyone.  The vast majority of people have no problem at their hearing.  Most of these hearings last less than 4 minutes in a Chapter 7 bankruptcy.  You must remember that a Chapter 7 bankruptcy trustee sits at a table for half the day and asks very similar questions to each of the debtors.  In reality, I imagine that the job can get somewhat boring for them.  But every once in a while a debtor or something about a debtor's petition will set a trustee off.

              In my experience there are a few things that really frustrate trustees and may cause them to get upset.  First and foremost is when they know or have reason to believe that a person is not being truthful.  I have seen a trustee get very angry when a debtor testified that she had no other real estate than her home and the trustee had found, prior to the hearing, that the debtor was on the deed of her mother's home as well.  I have also seen a trustee get very upset when a debtor seemed to be trying to be "cute" in his answers.  For example, answering every question with, "to the best of my knowledge" can get under a trustee's skin because, after all, the bankruptcy petition is based on your own personal fiances.  If you aren't able to testify regarding these than who can?

             Another way to get a trustee going is to drive a car to the bankruptcy hearing that has a loan on it and is not insured.  I once saw a trustee demand that the debtor turn over the keys to his vehicle at the 341 hearing when she found out that the vehicle was not insured.  I assure you that this is very rare, and I have never even heard of it happening on another occasion.

            There are also a few little things that, when added together, seem to really annoy trustees.  One is not speaking up.  The hearings are tape recorded in Indiana, so if you aren't speaking loud enough the recorder will not pick you up.  Another is not making audible answers.  While we often nod our heads instead of saying, "yes," the trustee wants you to speak up because he or she needs to record your answers.  Finally, seeming like you just don't have a clue is annoying to trustees.  By the time your case is called your attorney has likely told you what questions the trustee would likely ask, answered any questions you may have about how you should answer and you have probably had the opportunity to see a few of the hearings that were set prior to yours.  At that point I think trustees find it annoying when a debtor gets up for his or her hearing and give a "deer in the headlights" reaction when asked whether his or her address has changed since the filing of the bankruptcy petition.

            What you can do to avoid making a Chapter 7 or Chapter 13 trustee mad during the hearing is simple.  Number 1 rule is to tell the truth.  The fact is that if you are telling the truth you really have nothing to worry about in bankruptcy.  This is also why it is so important to tell your bankruptcy attorney everything about your assets and liabilities.  If you decide not to tell a bankruptcy attorney that your name has been added to mom's home, that you have a condo in Florida, or are otherwise untruthful to your attorney then your attorney has no ability to advise you.  It may be that the nugget of information you are holding back is not important at all.  However, it also may result in a loved one having their home taken.  If your lawyer had known that it may be that he or she would not have advised you to file bankruptcy in the first place.

            If you are reading this posting just prior to your 341 hearing please try not to be overly nervous. I know bankruptcy debtors are nervous about these hearings and that is only natural.  However, I have seen some people that are so nervous they look like they might have a heart attack.  This is not warranted.  The overwhelming majority of bankruptcy hearings for those represented by bankruptcy lawyers at the 341 hearings in Indianapolis go very smoothly.  Just remember to give yourself plenty of time to get to the hearing and to answer the trustee's questions honestly and chances are that your 341 hearing will be painless.

          If you are thinking it might be time to speak to a bankruptcy regarding your situation and you live in the Indianapolis area please feel free to contact me for a free consultation.  I will review your situation with you personally, answer your questions about bankruptcy and tell you whether or not I believe bankruptcy may be helpful for you.  I enjoy taking the financial stress off of my clients and love talking about bankruptcy....which I admit makes me a bit odd.  I can be reached at (317) 575-8222 or click here and we will contact you about an appointment.  Evening and weekend appointments can be arranged.

Halcomb Singler, LLP, is a debt relief agency.  It helps people file for bankruptcy under the bankruptcy code.  No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so.  The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.