What Are the Trustee’s Responsibilities?
Because the personal bankruptcy process can be confusing and intimidating, it’s always in your best interests to start the process by hiring an experienced and knowledgeable lawyer. Your attorney will be your liaison with the bankruptcy court and with the bankruptcy trustee. What is the role of the trustee? What type of interaction can you expect with the trustee?
Who Is the Bankruptcy Trustee?
A bankruptcy trustee is an employee of the United States Department of Justice. The trustee is appointed to protect a debtor’s estate during the bankruptcy process. The trustee works on behalf of the bankruptcy court, and their primary responsibility is to facilitate the process. They act as an intermediary between the debtor and the bankruptcy court, and they cannot take any legal action without authorization by the court.
What Is the Role of the Bankruptcy Trustee in a Personal Bankruptcy Filing?
The duties of the bankruptcy trustee vary, based on the type of bankruptcy filed. When a debtor seeks to permanently discharge debts through Chapter 7, the trustee oversees the liquidation of any assets that are relinquished. Accordingly, the trustee takes possession and/or control of all property turned over to the bankruptcy court. The trustee sets up a creditors’ committee to handle the distribution of assets and funds and arranges for the sale of assets and distribution of monies to creditors.
In a Chapter 13 filing, which involves restructuring debt with existing creditors, the trustee has a somewhat different role. The trustee collects payments under a reorganization plan and distributes those payments to creditors. The trustee may conduct the initial meeting of creditors and can also ask for payment increases, if appropriate.
Contact an Experienced Rockwall, Texas, Bankruptcy Attorney
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment to discuss your rights and options in bankruptcy, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.
