What is a Bankruptcy Trustee and What Role Do They Play?
A bankruptcy trustee is simply a person that is appointed to look over particular bankruptcy cases and tackles different responsibilities...
Whether you file for Chapter 7 or Chapter 13 bankruptcy, there will always be a bankruptcy trustee assigned to your case. Who/what is a bankruptcy trustee and what role do they play? A bankruptcy trustee is simply a person that is appointed to look over particular bankruptcy cases and tackles different responsibilities based on the debtor and creditors, depending on the type of bankruptcy. In either type of bankruptcy, the trustee is pretty much the person that follows through with the bankruptcy to assure that all things are in order.
Chapter 7 bankruptcy eliminates most of your unsecured debt. The role of the trustee will be to make sure all paperwork is in order, gather information on the property of the debtor, conduct a 341 meeting of the debtor and creditors, sell the property, distribute proceeds to the creditors and follow through on bankruptcy discharge.
Chapter 13 bankruptcy seeks to reorganize your debts. The role of the trustee will be to review the debtors repayment plan, collect payment from the debtor and distribute such payment to the creditors and monitor income and expense reports.