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| Ryan Hackett, Chapter 7 & 13 Bankruptcy Attorney |
As I talk with clients about their property being listed in
their petition I am often asked if the Trustee will come to their home for a
walk through to look at all of their belongings.
Although the Trustee has the power to do that, they simply
don’t. Our office has handled well over 1,000 bankruptcy cases throughout
Oregon and SW Washington. We have never seen a Trustee go to our client’s
property and look through their home.
There are a few reasons that a bankruptcy trustee is
unlikely to come to a debtor’s home and peek around. First, they likely don’t
have time to do that. Trustees manage hundreds or thousands of bankruptcy cases and would not be able
to do home searches in every case.
Second, they trust that people have listed all of their assets on their
petition because they are signed under penalty of perjury and debtors also
testify under oath at their meeting with the Trustee that the petition is
accurate. Finally, household items are
typically fully exempt. That means that the Trustee is not able to sell or
liquidate typical household goods.
The bottom line is that Debtors should list all of their
assets and their attorney should properly apply the exemptions to protect the
assets. If an asset is at risk of liquidation your attorney can advise you on
your options. Be honest about
everything, but you would likely not receive a visit from a bankruptcy trustee
to your home if you file chapter 7 or chapter 13.
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