Who is the trustee and what do they do?
In the United States, the Trustee in Bankruptcy case is a person who is appointed by the United States Department of Justice or by the creditors to administer the bankruptcy estate. In a Chapter 7 Bankruptcy the trustee gathers the debtor’s non-exempt property, managing the funds from the sale of those assets, and then paying expenses and distributing the balance to the owed creditors. In a Chapter 13 Bankruptcy the trustee is responsible for receiving the debtor’s monthly payments and distributing those funds proportionally to the bankrupt’s creditors. The Bankruptcy Trustee will act on behalf of the debtor to guarantee that both the creditors’ and the debtor’s interests are maintained in accordance with the bankruptcy laws, and will often be required to act as a negotiator between the two parties.
