The bankruptcy trustee in Chapter 7 is charged with liquidating non-exempt property and turning it into cash. At the same time, your job as the person who is looking for protection from your creditors is to cooperate with the bankruptcy trustee.
Section 704(a)(1) of the U.S. Bankruptcy Code states the trustee shall “collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest.” In addition, Section 521(a)(3) requires that a debtor, “cooperate with the trustee as necessary to enable the trustee to perform the trustee’s duties … ”
In other words, don’t bar the door to the house and make it difficult. It’s not personal – the trustee has a job to do. If you do make things difficult then the trustee can ask the judge to get the U.S. Marshals to come to your home and force you to comply.
Think of what the neighbors would say if they saw a bunch of armed gentlemen storming into your home just because you filed for Chapter 7 bankruptcy.
That’s pretty much what Denny Hecker is going to have to worry about.
I have been following the bankruptcy case of Denny Hecker, the guy who filed for Chapter 7 bankruptcy in Minnesota and butted heads with the bankruptcy court over nondisclosure and alleged wrongdoing. Well, it seems that Denny is at it again.
U.S. Bankruptcy Judge Robert Kressel, who is overseeing Hecker’s Chapter 7 bankruptcy case, has ordered federal marshals to help a bankruptcy trustee gain access to Hecker’s home according to a recent story. Hecker’s girlfriend Christi Rowan has been blocking efforts to get into the home to tag property for auction, and it seems as if enough is enough.
Rowan was previously ordered to turn over $425,000 worth of gifts and cash, but she apparently hasn’t been forthcoming. Moreover, people have been calling the Chapter 7 bankruptcy trustee to let him know they’ve been buying things from Rowan lately.
Granted, this is an extreme case that seems to be playing out more like a soap opera than a routine Chapter 7 bankruptcy case. But it serves to underscore one major point – if you don’t follow the rules when it comes to filing for Chapter 7 bankruptcy, the judge may take some pretty extreme measure to keep you in line.
As for Hecker, if he continues to play fast and loose he may find himself behind bars for contempt of the bankruptcy judge’s orders. I’m pretty sure he doesn’t want that to happen.
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