What is the Role of a Trustee in a Bankruptcy Case?
Chapter 7 Bankruptcy Case – In a chapter 7 bankruptcy case, all of the debtor’s property belongs to the bankruptcy estate unless the court makes a ruling that certain property is no longer property of the estate, the trustee abandons property to the debtor, or the property is exempt under California law from collection by creditors. It is recommended to consult a bankruptcy attorney to determine what property is exempt. A trustee is appointed to take control of certain assets of the debtor, bring these assets into the estate, and sell or distribute these assets for the benefit of creditors. Some assets will remain with the debtor if these assets are determined to be exempt from distribution to creditors. A trustee can recover certain assets that were previously transferred and bring those assets into the bankruptcy estate. Neither a debtor nor any other person or business should use or transfer an asset that belongs to the bankruptcy estate unless there is an express court order or not
