What Are Bankruptcy Trustees? Let’s Read More About Them

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What Are Bankruptcy Trustees? Let’s Read More About Them

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Chapter 7 Trustee

The trustee is in charge of Chapter 7 cases. He must assess if the debtor qualifies for a discharge, whether any assets need to be sold, and exemption claims. He serves as the creditors’ collective representative. He also defends the legality of the bankruptcy system.

He is appointed by the United States Trustee, a representative of the Department of Justice, who is also in charge of overseeing his performance. He is not employed by the government. The trustee is in charge of the initial meeting of creditors. Disputed matters are decided by the bankruptcy judge.

The trustees are compensated in part from the filing fee that was paid to the court at the start of the action. Any further payment is a fee based on the assets they manage on the estate’s behalf. If there are no assets left in the estate at the conclusion of the process, the trustee just gets his $60 per case.

Chapter 13 Trustee

The UST also selects a private individual to act as the Chapter 13 trustee. In addition to analysing the schedules to see if the case complies with the Bankruptcy Code and contesting any matters that do not, he undertakes the same review tasks as a Chapter 7 trustee. He serves as the debtor’s payment disbursing agent in addition. Typically, one Chapter 13 trustee oversees each case in his or her district or division. The trustee receives a very little part of the funds that go through the Chapter 13 case. The UST decides that proportion after taking into account the Chapter 13 trustee’s operating expenses.

Trustee of America

This Government Trustee shall choose and supervise the Chapter 7 and Chapter 13 trustees. The UST has the right to speak in court since it is an interested party. UST is accountable for reviewing Chapter 7 cases for abuse or discharge denial. Since the 2005 amendments, they appear to be more active in this supervisory role and proactive in trying to move cases into Chapter 13. They also have a supervisory role in Chapter 11 cases, especially when there isn’t a creditors committee.

Please click on the following website for assistance if you need it on bankruptcy requirements: https://recoverylawgroup.com/bankruptcy.


    2023-03-31T06:31:03+00:00