What Is A Bankruptcy Trustee?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Mar 20, 2007 in General Bankruptcy Information
When a bankruptcy case is filed, a Trustee is appointed to oversee it. The Trustee’s job is to collect funds to pay creditors as required under the bankruptcy laws, and to distribute those funds to pay claims for debts owed.
The Trustee’s job is to look after the interests of the creditors and see that they are paid what they are entitled to be paid under the law. While they are not the enemy of the debtors, they will proceed against a debtor who does not follow the law. In a way, they are the eyes and ears of the court system, and it is the job of the Trustee to bring certain issues to the Judge to decide.
In Chapter 13, the Trustee reviews the proposed plan to make sure that the plan payments are what is required by the bankruptcy laws, collects monthly payments from the bankruptcy debtor, and distributes the funds collected to the creditors .
In Chapter 7, the Trustee will collect any non-exempt assets from the Debtor, sell (liquidate) the assets, and distribute the funds to the creditors.
You must be logged in to post a comment.