Trusting the Trustee in your Bankruptcy

What is the role of a Bankruptcy Trustee?

What is the role of a trustee in a bankruptcy? A Bankruptcy Trustee is a court-appointed, impartial officer in charge of administering the debtor’s estate.  He or she represents creditors and protects their interests.  The duty of a bankruptcy trustee varies depending if the debtor files a chapter 7 or chapter 13 bankruptcy.  No matter what chapter of bankruptcy that you are filing, you have to have faith in the bankruptcy trustee and know that he or she will be both fair and impartial.  The bankruptcy trustee is not your enemy (nor is he your friend), a bankruptcy trustee is impartial and fair.

Typically, the Tasks of a Bankruptcy Trustee Include:

•  Collecting Estate Property,
  
•  Appearing in Court
  
• Objecting to Discharge,
  
• Distributing Funds to Creditors,
  
• Objecting to Exemptions
  
• Liquidating Non-Exempt Estate Property. 

The Chapter 13 trustee is responsible for examining the debtor’s proposed plan, disclosures, statements, and schedules.  They schedule the meetings and court hearings. Also, payments made during the plan by the debtor is collected and distributed to creditors by the trustee.  Basically, this official manages the financial affairs of the debtor and repays creditors. 

In a chapter 7 bankruptcy, the trustee evaluates the case and makes sure that there is no fraudulent transfers or abuse of the bankruptcy system.  It is the duty of the trustee to make sure that the debtor’s plan is operating, and he or she presides over the initial meetings of creditors.   As in the case of most Chapter 7 filings, there are no assets to administer (no-asset cases).

An honest debtor should get a discharge in a bankruptcy.  There is no reason to have a fear of a bankruptcy trustee nor should you be afraid of your bankruptcy trustee.  Chances are that your bankruptcy attorney has worked with the bankruptcy trustee in charge of your case and your qualified bankruptcy attorney should be able to help familiarize you with the habits and practices of a particular bankruptcy trustee.  In order for a bankruptcy to work as it is designed to do, both the debtor and the trustee must carry out their obligations. 

Since the bankruptcy trustee is a representative of the federal government, it can be a little scary knowing you will be examined by him/her.  Having an experienced bankruptcy lawyer can take the stress out of dealing with a trustee.  An experienced bankruptcy lawyer will stand by your side every step of the way while you are filing for chapter 13 or chapter 7 bankruptcy protection.  When you meet with the trustee, being prepared, honest, and forth-right will soon have you on your way to your bankruptcy discharge.