What are the duties of a Chapter 7 Panel Trustee?
Although their obligations are many and varied, the Chapter 7 Trustees’ primary goal is to liquidate assets for the benefit of creditors where possible. Chapter 7 Trustees distribute approximately $1.5 billion each year to creditors. In approximately 90% of the Chapter 7 bankruptcy cases filed, there are no assets available for liquidation, either because assets are exempt (protected) by debtors or liened by secured creditors. In all cases, Chapter 7 Trustees must investigate the debtor’s affairs, examine the debtor under oath, and submit reports to the bankruptcy court and Office of the U.S. Trustee. The Panel Trustee will review the debtor’s petition and schedules after they have been filed with the Court. The Panel Trustee may request additional information from the debtor to review in conjunction with the debtor’s petition and schedules. The Panel Trustee specifically reviews the debtor’s exemption schedules to determine whether the debtor has properly followed the state or federal
