TCMS Today August 2007
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Roy M. Terry, Jr.
Chapter 7 Trustee
Eastern District of Virginia, Richmond Division
July, 2007 marks my fifth anniversary as a panel trustee, apparently meaning that I now begin to enjoy a true understanding of the process from case opening to closing.
During my second year, I was among the first class of new trustees taught by the U.S. Trustee Program in Columbia, S.C. This was a beneficial experience which I would actually hope to repeat, perhaps next time as an instructor. BAPCPA then appeared with new law to learn and procedures to develop. It also brought the crush of case filings, followed by a dearth of them. Filings in the Eastern District of Virginia are gradually coming back. The current frequency of phone and email inquiries from prospective debtors, and the high number of foreclosures indicate more cases to come.
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Arguably, my most memorable case to date involved a jewelry store. A disgruntled investor/shareholder first placed the business into Chapter 7, and I was appointed. On a Thanksgiving Eve morning, I entered the store with police, an accountant and a team from a local auctioneer firm. Employees and owner were asked to leave, as our team secured the premises and merchandise just prior to the Christmas shopping season. One week later, the Court found that the investor/shareholder lacked standing to file, and the Chapter 7 case was dismissed. The investor/shareholder was ordered to pay the costs and expenses of the trustee’s professionals. A voluntary Chapter 11 filing then followed. One year later, I received the case back upon conversion amid tales of bizarre behavior by the owner and a small mountain of unpaid administrative expenses. A jewelry liquidator was already in place from the Chapter 11, and I continued with that liquidation in my first operating Chapter 7 case.
The trustee panel in Richmond has been notably stable and distinguished over time. Two of our trustees have each served for over forty years. My appointment came after a panel member was appointed to a state court judgeship. In 2006, another panel member, the Honorable Kevin R. Huennekens, was appointed Bankruptcy Judge. The professionalism and experience of our panel members has been a tremendous benefit to me as I have learned the trusteeship. We came together especially prior to BAPCPA, as we worked to develop consistent practices.
In addition, I have enjoyed working with a single trustee paralegal for the entire five years who is dedicated solely to working on trustee matters. In short, her professionalism is appreciated by lawyers and debtors alike.
All Chapter 7 Trustees in the Eastern District of Virginia work with Epiq Systems. Having everyone on the same technological page greatly facilitates our trustees in supporting one another. The training and support received is also excellent. Epiq Systems is always only a phone call or email away.