How long does a bankruptcy trustee have to object to a bankruptcy exemption?

When people are struggling to pay their debts due to periods of unemployment or unexpected medical expenses, they may turn to bankruptcy as a last resort. While they may be able to keep their homes and car in many cases, certain assets can be sold in order to pay off creditors. In order to protect these items, the petitioner may exempt certain assets which are then off limits to the bankruptcy court.

The Role of the Bankruptcy Trustee

Individuals who file for either Chapter 7 or Chapter 13 will have a trustee appointed to oversee their case. Their primary role is to be a liaison between the debtor and the creditor, but they are really working on behalf of the creditor. The trustee will oversee the process of selling any non-exempt assets and distributing the monies accordingly to each creditor. In a Chapter 13 case, the trustee is responsible for reviewing the debtor’s proposed repayment plan.

When a Trustee Objects to an Exemption

The trustee object bankruptcy exemption must adhere to the federal rules of bankruptcy procedure. This means that trustee must object to an exemption within the required 30-day period outlined in the Federal Rules of Bankruptcy Procedure. The bankruptcy trustee must file their objection to the exemption within 30 days from the date of the creditors meeting. The court will issue a hearing in order to determine whether or not the petitioner is entitled to the exemption in question.

Doing Battle With the Bankruptcy Trustee

Fortunately for the petitioner, the law requires that the trustee prove that the exemption should not be allowed. Once an objection is filed, the debtor must file an immediate response with the court. These are complicated legal proceedings and require experienced legal representation by a skilled bankruptcy attorney. It’s best to hire a professional rather than risk losing your assets.