WHAT IS A TRUSTEE IN BANKRUPTCY?
The Trustee in bankruptcy is an officer of the court, appointed to gather your nonexempt property, convert it into cash, and pay this money out to the proper creditors if you file a Chapter 7. The law gives the Trustee the power and the means to perform his or her duties, the principal one of which is to collect, on behalf of your creditors, all of your nonexempt property. If you have no nonexempt assets, the Trustee will still be appointed, but he or she will not collect any property. In a Chapter 13 case, the Trustee inquires as to whether you can make your regular monthly payments. You generally keep all your property in a Chapter 13. • WHAT ARE MY RESPONSIBILITIES TO THE TRUSTEE IN BANKRUPTCY? The law requires you to cooperate with the Trustee in bankruptcy, and be truthful. If you do not cooperate with the Trustee, your discharge in bankruptcy may not be granted. • WHAT IS A FIRST MEETING OF CREDITORS? The First Meeting of Creditors is an administrative hearing held to start the a
The website of the Superintendent of Bankruptcy describes trustees in bankruptcy as follows: A trustee in bankruptcy is a person licensed by the Superintendent of Bankruptcy to administer proposals and bankruptcies and manage assets held in trust. The trustee can give a debtor information and advice about both the proposal and bankruptcy processes and make sure that both the debtor’s rights and the creditor’s rights are respected. A person has to use a trustee if he or she goes bankrupt. However, trustees are not just for filing bankruptcy. They are also Professional Debt Consultants and can make arrangements with your creditors on your behalf; provide debt counselling; negotiate settlement agreements and help you make a proposal to your creditors to avoid bankruptcy. If a trustee feels you need the protection of independent legal advice the trustee will refer you to an insolvency lawyer. In some cases the trustee will be able to advise you of a solution that will cost you nothing and
The website of the Superintendent of Bankruptcy describes trustees in bankruptcy as follows: A trustee in bankruptcy is a person licensed by the Superintendent of Bankruptcy to administer proposals and bankruptcies and manage assets held in trust. The trustee can give a debtor information and advice about both the proposal and bankruptcy processes and make sure that both the debtor’s rights and the creditor’s rights are respected. When you file an assignment in bankruptcy, a trustee is appointed. What does a bankruptcy trustee do? The trustee has two main jobs: • To take your assets and sell them. For example, if you own a house with no mortgage, the trustee would sell the house, and use the money to repay your creditors (the people you owe money to). • To take whatever money they recover, and distribute it to the creditors at the end of your bankruptcy. A person has to use a trustee if he or she goes bankrupt. However, trustees are not just for filing bankruptcy. They are also Profess
Trustees are Attorneys appointed by the Office of the United States Trustee of The Department of Justice to oversee the Bankruptcy Estate. 1. Chapter 13 Trustee – A chapter 13 trustee is an officer of the Court appointed to oversee the bankruptcy estate, make sure the debtor’s plan is in compliance with the Bankruptcy Code, and ultimately collect and distribute all payments to be made by the debtor. The chapter 13 trustee is compensated by collecting a commission on the debtor’s payments. 2. Chapter 7 Trustee – A chapter 7 trustee is also an officer of the Court appointed to oversee the bankruptcy estate, investigate as to whether the debtor has any assets or has committed any fraudulent acts, collect and sell those assets and distribute them to the debtor’s creditors. The chapter 7 trustee is compensated by receiving a percentage of any assets collected for the bankruptcy estate and in attorney’s fees incurred in collecting those assets.
