Bankruptcy trustees are neutral third parties appointed by the court to administer a debtor’s estate, and they are there to protect creditors’ interests. A trustee’s duties vary based on which bankruptcy chapter is being filed, but most cases include tasks such as court appearances, property collection, objections to discharges and exemptions, property liquidation and disbursement to creditors.
Chapter 7 Bankruptcy Trustees
The US Trustee appoints members for a minimum of one year, with possible renewal. During a Chapter 7 Bankruptcy in Fairfield, OH, a trustee’s role is limited; they’re only responsible for property liquidation if assets exist. However, in most cases, there’s no need for asset administration. Trustees distribute property according to the bankruptcy code by selling assets and making payments to creditors.
Trustees can file a motion for dismissal if they believe the debtor is abusing the system, and they can deny a discharge if evidence of fraud or perjury is found. A bankruptcy trustee’s duty is to make sure that a debtor’s repayment plan works as smoothly as possible, and trustees preside over creditor meetings and attend hearings at different times during cases.
Standing Trustees (Chapter 13 Trustees)
The United States Trustee board appoints a trustee to administer and oversee cases in certain districts. In most cases, only one trustee is assigned to a particular area unless the area’s volume of cases is abnormally high. Chapter 13 trustees take a more active role than Chapter 7 trustees. They are responsible for reviewing payment plans, schedules, statements and disclosures.
Trustees collect payments and distribute them to creditors according to priorities set forth in the bankruptcy code. In Chapter 13 bankruptcy, the trustee’s responsibility is to manage the financial affairs of the debtor, and to ensure that creditors are repaid. Trustees must attend hearings regarding property valuation, they must make sure that debtors make payments, and they handle the disbursement of funds to creditors.
Every Chapter 7 or Chapter 13 Bankruptcy in Fairfield, OH has unique circumstances, but the role of a trustee does not change much from one case to the next. If you are considering bankruptcy and need advice, call Dean Snyder Attorney At Law today.
