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Trustees

When a chapter 7 petition is filed, the court appoints an impartial “trustee” to administer the case and liquidate the debtor's nonexempt assets. 11 U.S.C. §§ 701, 704. If all the debtor's assets are exempt or subject to valid liens, the trustee will normally file a "no asset" report with the court, and there will be no distribution to unsecured creditors. Most chapter 7 cases involving individual debtors are no asset cases. But if the case appears to be an "asset" case at the outset, unsecured creditors must file their claims with the court within 90 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 3002(c). A governmental unit, however, has 180 days from the date the case is filed to file a claim. 11 U.S.C. § 502(b)(9). In the typical no asset chapter 7 case, there is no need for creditors to file proofs of claim because there will be no distribution. If the trustee later recovers assets for distribution to unsecured creditors, the Bankruptcy Court will provide notice to creditors and will allow additional time to file proofs of claim. Although a secured creditor does not need to file a proof of claim in a chapter 7 case to preserve its security interest or lien, there may be other reasons to file a claim. A creditor in a chapter 7 case who has a lien on the debtor's property should consult an attorney for advice.

Commencement of a bankruptcy case creates an "estate." The estate technically becomes the temporary legal owner of all the debtor's property. It consists of all legal or equitable interests of the debtor in property as of the commencement of the case, including property owned or held by another person if the debtor has an interest in the property. Generally speaking, the debtor's creditors are paid from nonexempt property of the estate.

The primary role of a chapter 7 trustee in an asset case is to liquidate the debtor's nonexempt assets in a manner that maximizes the return to the debtor's unsecured creditors. The trustee accomplishes this by selling the debtor's property if it is free and clear of liens (as long as the property is not exempt) or if it is worth more than any security interest or lien attached to the property and any exemption that the debtor holds in the property. The trustee may also attempt to recover money or property under the trustee's "avoiding powers." The trustee's avoiding powers include the power to: set aside preferential transfers made to creditors within 90 days before the petition; undo security interests and other prepetition transfers of property that were not properly perfected under nonbankruptcy law at the time of the petition; and pursue nonbankruptcy claims such as fraudulent conveyance and bulk transfer remedies available under state law. In addition, if the debtor is a business, the bankruptcy court may authorize the trustee to operate the business for a limited period of time, if such operation will benefit creditors and enhance the liquidation of the estate. 11 U.S.C. § 721.

Section 726 of the Bankruptcy Code governs the distribution of the property of the estate. Under § 726, there are six classes of claims; and each class must be paid in full before the next lower class is paid anything. The debtor is only paid if all other classes of claims have been paid in full. Accordingly, the debtor is not particularly interested in the trustee's disposition of the estate assets, except with respect to the payment of those debts which for some reason are not dischargeable in the bankruptcy case. The individual debtor's primary concerns in a chapter 7 case are to retain exempt property and to receive a discharge that covers as many debts as possible.

TRUSTEE(S) COVERING THE EASTERN DISTRICT OF NEW YORK

Neil H. Ackerman
190 Willis Avenue
Mineola, NY 11501
Phone: (516)747-0300



R. Kenneth Barnard
384 W. Main Street
Babylon, NY 11702
Phone: (631)661-0906



David J. Doyaga
26 Court Street, 10th Floor
Suite 1002
Brooklyn, NY 11242
Phone: (718)488-7500


Robert L. Geltzer
1556 Third Avenue, Suite 505
New York, NY 10128
Phone: (212)410-0100



Lori L. Jones
98 Cutter Mill Road
Suite 201 North
Great Neck, NY 11021
Phone: (516) 466-4110



Kenneth I. Kirschenbaum
200 Garden City Plaza
Garden City, NY 11530
Phone: (516)747-6700


Debra Kramer
98 Cuttermill Road, Suiter 466 South
Great Neck, NY 11021
Phone: (516) 482-6300
Fax: (516) 482-6317



Paul I. Krohn
40 Clinton Street, Suite 1G
Brooklyn, NY 11201
Phone: (718)875-7431



Richard J. McCord
90 Merrick Avenue
East Meadow, NY 11554
Phone: (516)794-1616



Allan B. Mendelsohn
P.O. Box 510
33 Queens Street
Syosset, NY 11791
Phone: (516)921-1670



Gregory M. Messer
26 Court Street, Suite 2400
Brooklyn, NY 11242
Phone: (718)858-1474



Robert J. Musso
26 Court Street, Suite 2211
Brooklyn, NY 11242
Phone: (718)237-9059



Alan Nisselson
156 West 56th Street
New York, NY 10019
Phone: (212)237-1021



Richard E. O’Connell
24-44 Francis Lewis Blvd., 2nd Floor
Whitestone, NY 11357
Phone: (718)767-6400



John S. Pereira
150 East 58th Street, 14th Floor
New York, NY 10155
Phone: (212)758-5777



Marc A. Pergament
400 Garden City Plaza, Suite 403
Garden City, NY 11530
Phone: (516)877-2424



Robert L. Pryor
675 Old Country Road
Westbury, NY 11590
Phone: (516)997-0999



Kenneth P. Silverman
100 Jericho Quadrangle
Jericho, NY 11753-3302
Phone: (516)479-6300


Richard L. Stern
135 Pinelawn Road, Suite 120 South
Melville, NY 11747
Phone: 631)549-7900



Andrew M. Thaler
90 Merrick Avenue, Suite 400
East Meadow, NY 11554
Phone: (516)228-3553



Edward Zinker
278 East Main Street, Suite C
Smithtown, NY 11787
Phone: 631)265-2133