WHAT IS A TRUSTEE IN BANKRUPTCY?
Bankruptcy Trustee is a person who is appointed by the United States Department of Justice.
In Chapter 7 Trustee collect debtor Property and Sell Those and distribute in to creditors.
In Chapter 13 Trustee has Reposponablity to collect monthly payment from the debtor and distribute in to Creditors.
A trustee in bankruptcy is an entity, often an individual, in charge of administering a bankruptcy estate.
Source: http://en.wikipedia.org/wiki/Trustee_in_bankruptcy
A Trustee in Bankruptcy is licenced by the Federal Superintendent of Bankruptcy (an Officer of the Federal Government) to administer consumer proposals and bankruptcies. The Trustee represents your creditors and is an officer of the court. The Trustee’s duty is to protect your creditors first, and you second. Trustees also provide financial counseling, debt management and handle negotiation with creditors Trustees administer consumer bankruptcies, and formal and informal proposals. The Trustee will give you information and advice about both consumer proposals and/or bankruptcy processes. He/she will make sure that your rights, as well as those of your creditors, are respected.Your Trustee will do the following for you: • Evaluate your immediate problem such as total debt, collection problems, garnishees, judgements, creditor pressure • Determine your overall financial situation and your ability to pay; • Review your rights and responsibilities as well as what rights and responsibilitie
The trustee is an officer of the court, usually a practicing attorney, appointed by the bankruptcy court. His or her primary duty is to gather your non-exempt property, turn it into cash, and pay this money to your creditors. You are required by law to cooperate with the trustee. If you refuse to cooperate, your discharge may be denied.
A trustee in bankruptcy is an impartial person, assigned by the courts to oversee and administer the bankruptcy process for an individual or a corporation. Trustees are nongovernmental employees who are usually licensed attorneys. They are appointed by the United States Trustee and held to be an officer of the Department of Justice to uphold and administer United States Bankruptcy Code. The responsibilities and level of involvement of a trustee in bankruptcy are determined by what type of bankruptcy has been filed. Whether it be an individual filing Chapter 7 or Chapter 13 bankruptcy, or a corporation filing Chapter 11 bankruptcy, the primary role of a trustee in bankruptcy is to represent the creditors throughout the bankruptcy process. When a debtor claims discharge with asset exemptions, which is very common in Chapter 7 bankruptcy processes, trustees review the entitlement of a debtor discharge and may file objections against exemptions or they may completely oppose a discharge. A
