One of the quickest ways to lose money in a bankruptcy case is to underestimate the person checking your paperwork, your property, and your payments. That person is the court-appointed official who oversees a bankruptcy case, reviews the debtor's financial disclosures, and protects the interests of creditors and the bankruptcy estate. In a Chapter 7 case, a bankruptcy trustee can collect and sell nonexempt assets and distribute the proceeds to creditors. In a Chapter 13 case, the trustee reviews the repayment plan, collects plan payments, and sends money to creditors under court approval.

A bankruptcy trustee is not your lawyer and does not work for you, even if the trustee seems neutral. The trustee's job is to verify that assets, debts, income, and transfers have been honestly reported. If something looks hidden, undervalued, or recently given away, the trustee can object, demand records, or ask the court to deny a discharge. That can directly affect your wallet and whether you keep property.

For an injury claim, the stakes can be high. A pending personal injury claim or settlement may count as an asset that must be disclosed. In Washington, exemption rules under RCW 6.15 and related statutes may protect part of a recovery, but not always all of it. If a claim arose before filing and is not disclosed, the trustee may take control of it or challenge your right to keep the proceeds.