Is it better for the attorney you retain to also be a trustee?

[HAP]

I have consults with about 4 attorneys in the next two weeks. I see on one of the attorney's websites that he is a trustee in the Eastern District of NC (we're right outside of Raleigh). Would it be better for us in the long run if our attorney was also a trustee (you know, he would know the ins and outs of what trustees are looking for, the good ol' boy network and so on) or would that work against us in maybe he might be really strict or stringent on what he thinks we can or can't do? Anyone have thoughts on this?

Thanks again!

[emoney]

I would probably use this attorney as he knows the "ropes" in you district.
regards,
emoney

[ssdsco]

From what I've read the folks that hired a trustee as their attorney were happy with the decision and that includes me.

[yoyoma51]

We've retained a trustee as our attorney and so far, it has been great. Our 341 was Wednesday and he is very good friends with our trustee, so it was very smooth and informal. PLUS he knows exactly what the local trustees are looking for ('cause he is one!).

He is charing us about $300 more than the other quotes we received, but it is worth it.

Good luck!

PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[HAP]

Thanks all. I'm tempted to cancel all my other consults if I like what I hear (because he's the first one I have an appointment with), but I guess I should hear what the others have to say?

[Lindsay]

I'm intrigued as to using a trustee as our lawyer. How do you find out if a lawyer is a trustee or not? We haven't hired a lawyer yet, I was hoping to next week.

[HAP]

You can probably look up your district's bankruptcy court website and there should be a list of trustees, and then maybe you can google each individual name to see if they represent debtors also? I just happen to find out this guy was one by looking on his website and saw that it said he was also a Chapter 7 trustee for our district since 1997. He is the only one charging for the initial consult, but it is only $50 and he will apply that toward your case if you retain him. Maybe he's trying to weed out the seriously considering versus not-so.

[yoyoma51]

Here is a link with a list of all the trustees by state:

http://www.usdoj.gov/ust/eo/private_trustee/locator/index.htm

Many (if not most) are also private practice bankruptcy attorneys.

[Hollyhomemaker]

The trustees are BK attorneys who were picked by the judge to be a trustee for the BK court. Generally, from what Ive learned, the attorneys hate being picked to be a trustee beause it cuts into their private practice.

All the attorneys and trustees know each other, and the BK lawyers who are not picked to be trustees know as much about what is needed to be done as the trustees themselves. You can't be a trustee without being a BK lawyer first.

I think too much of a big deal is made over getting a trustee. If you get a trustee he is not going to be the trustee of your case, so what is the point? He doesn't have more knowledge over what is needed than any of the BK lawyers. They all work together after all and all know each other very well, and it's certainly not as if you picking a trustee is going to give you some more "pull" with the trustee presiding over your case or with the BK courts.

[ssdsco]

[yoyoma51]

To quote Hollyhomemaker:

The trustees are BK attorneys who were picked by the judge to be a trustee for the BK court. Generally, from what Ive learned, the attorneys hate being picked to be a trustee beause it cuts into their private practice.

First, bankruptcy trustees are not chosen by a judge.

Second, they are not all attorneys. There is no such requirement to be a trustee.

Third, trustees are trustees because they WANT to be a trustee. You have to apply, get interviewed, FBI backround check, and get hired before you can be a trustee. You are not 'appointed' at random. Therefore, this does not 'cut in' to your personal practice.

Fourth, the government is VERY generous on how the pay trustees. Trustees can make a maximum of about $175,000 per year. Not bad for a part-time job!

More info here: http://www.usdoj.gov/ust/eo/private_...ancies/7ad.htm

In fact, our attorney suggested my wife apply to be a trustee as she has a BS in Business Finance and lots of financial experience on her resume.

In addition to our attorney being a trustee since 1982, he also served as the President of the National Trustees Association for 2 years.

Does anyone seriously think this experience isn't worth the extra few bucks?

Finally, why not hire a lawyer (trustee) that knows the system? Why not play it safe rather than sorry? Based on our personal experience (we met with several attorneys), our attorney (trustee) had MANY more ideas on how we could keep our stuff and pass through the bankruptcy with no hang-ups.


PLEASE NOTE: I am not a lawyer. Bankruptcy may or may not be a best scenario for you. It depends on your situation. You may assume my advice is totally useless. Talk to an experienced bankruptcy attorney (or three) in your jurisdiction for legal advice.

[FreshLikeADaisy]

HAP, that's funny! I just came from where you are now. Filing in Florida, I don't have to deal with the same system as in NC, but everything I have heard about getting a trustee is that it's a very good deal. Also, everything that yoyoma wrote about the appointment of trustees is correct; I'm glad he corrected that. BTW, eastern NC has one of the best bk websites in the country, have you seen it? It's http://www.nceb.uscourts.gov/WebHelp...o_Se_Guide.htm if you're interested. I know you'll be getting a lawyer, but that answers a lot of questions. Good luck!

[HAP]

Great, thanks for the link FLAD! Ahhh Florida I'd love to move down there and be near my mecca one day (Orlando and all its theme parks) But my 6 year old would have a fit if I moved him away from my parents right now (and I'd miss them too). You sound like you've got a good head on your shoulders about what you've been through from what I've read. Maybe I can bend your ear about some things about all this BK stuff one day through the PM system (if you wouldn't mind). P.S. We're in Clayton, heard of it?

Thanks again for the link!