What Is A Bankruptcy Administrator?

24 Mar What Is A Bankruptcy Administrator?

Bankruptcy courts have a U.S. Trustee (UST) in all states except for North Carolina and Alabama. In North Carolina and Alabama, the Bankruptcy Administrator serves much the same role as the U.S. Trustee.

A United States Trustee oversees the case trustee and the overall administration of the case. They are sort of like a District Attorney / Prosecutor in state court – to serve justice and the law, and protect and support the integrity of the court system.

All bankruptcy courts used to have a Bankruptcy Administrator, until the creation of the UST program. For a variety of reasons, some states were excluded from converting over to the UST program when it was instituted, and NC and AL remain the last to retain them.

The U.S. Trustee is part of the Executive Branch, while the Bankruptcy Administrator is part of the Judicial Branch.

The President appoints the UST for the court circuits. The UST hires Assistant U.S. Trustees for more direct involvement and day to day operations in the districts. The Bankruptcy Administrator is appointed by the court of appeals judges of the circuit, rather than the President.

A case trustee is different from a UST. When a bankruptcy case is filed, a case Trustee is appointed to oversee the case. The UST oversees the case trustee and also the case, works as an administrator, and brings legal challenges to enforce the bankruptcy laws and procedures.

A debtor will meet their case trustee at their creditors meeting about a month after their case is filed. In Chapter 7 he/she will collect assets that the debtor can’t keep, although many debtors file bankruptcy and keep everything . If there are assets to sell, the trustee will do so and distribute funds to creditors.

Chapter 13 Trustees don’t usually sell assets – they collect the monthly plan payments from the debtors, make sure the plans comply with the laws, and enforce the payments to make sure the plans are paid as required. Chapter 13 plans can provide for debtors to sell the property and turn over funds, or they can keep non-exempt assets so long as their payments will give their creditors at least as much as they could get from the sale of the property.

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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