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Who are the Bankruptcy Trustees

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by , 10-07-2011 at 07:14 PM (1137 Views)
The United States Trustee appoints and monitors bankruptcy trustees. The office of the United States Trustee appoints a bankruptcy trustee to each chapter 7 and chapter 13 case. The debtor will rarely, if ever, interact directly with the United States Trustee in his/her case. Rather, the bankruptcy trustee is responsible for the day to day operations for each bankruptcy case. The bankruptcy trustee is a representative for the creditors, not the debtor. As such, they are looking out for the creditors’ best interests and seeking to obtain as much money as possible for the creditors.

Some of the primary responsibilities of the bankruptcy trustee are to determine which assets are exempt from bankruptcy, to attend the creditors’ meeting, and to oversee the bankruptcy process in general. The trustee then sells the debtors’ non-exempt assets and distributes the money equally to all creditors.

The trustee’s role is slightly different in a chapter 13 case. The trustee is still representing the creditors’ best interests. The trustee is responsible for reviewing the repayment plan of the debtor, examining creditor claims, making recommendations for the repayment plan, and ensuring the repayment plan is feasible. He also collects the periodic payment from the debtor for distribution to the creditors.
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Bankruptcy Law