Trustee Blog

521 Debtor’s Duties

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Chapter 7 Trustee Arturo Cisneros reviews the debtor’s Statement of Intention. If the debtor says that he is surrendering a vehicle, then the Trustee wants the vehicle to be surrendered prior to the meeting of creditors. If the vehicle is not surrendered, then he asked that it be surrendered within 10 days and that a letter be sent to the creditor to have the vehicle picked up. Trustee Cisneros also asks that a letter be sent to him showing that the vehicle has been picked up.

Trustee is working under section 521 of the code which states:

“(a) The debtor shall—

(B) unless the court orders otherwise—

(2) if an individual debtor’s schedule of assets and liabilities includes debts which are secured by property of the estate—

(A) within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property; and

(B) within 30 days after the first date set for the meeting of creditors under section 341 (a), or within such additional time as the court, for cause, within such 30-day period fixes, perform his intention with respect to such property, as specified by subparagraph (A) of this paragraph;

except that nothing in subparagraphs (A) and (B) of this paragraph shall alter the debtor’s or the trustee’s rights with regard to such property under this title, except as provided in section 362 (h);

if a trustee is serving in the case or an auditor is serving under section 586 (f) of title 28, cooperate with the trustee as necessary to enable the trustee to perform the trustee’s duties under this title…”

 

Practice Pointer:

If the debtor intends to surrender a vehicle, contact the creditor before the meeting of creditors to get the process rolling on surrender.

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