What Is A Trustee?
By Rachel Lynn Foley - Kansas City, MO Bankruptcy on Jun 23, 2008 in Bankruptcy Practice and Procedure
Everyone talks about trustees but what exactly does a trustee do? Is the trustee the judge? No. Is the trustee the jury? No. So what does the term trustee mean?
Wikipedia defines trustee as someone who holds property on behalf of a beneficiary. In the case of bankruptcy the trustee will hold your non-exempt property for the benefit of the creditors who may be the beneficiary of your bankruptcy estate.
Chapter 7 Trustees will take any property that is not exempt or abandoned and then sale the property. He or she will than take the proceeds and distribute the funds according to the priority status of the creditor.
Chapter 13 Trustees will take the money that you pay into his/her office each month and distribute the funds according to your Plan. The Chapter 13 Trustee will also manage your case for the 36 - 60 month period ensuring that you are paying the funds to the creditors that should be paid. For the basics of what a Chapter 13 Bankruptcy is read Dana Wilkinson’s 3 part series: Part I, Part II, and Part III.
There are many cases in Missouri and Kansas that are filed as Chapter 7 or Chapter 13’s that never even go before the judge. The trustee in these two states maybe the only one you ever meet from the Bankruptcy Court during the lifetime of your case.
For more information about trustees:
Department of Justice Private Trustee Information.
Chapter 13 Trustee list.
National Association of Bankruptcy Trustees.
Written by Rachel Lynn Foley.
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