What is a Bankruptcy Trustee?
When you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Oak Park, it is important to learn more about the bankruptcy process in general and the various steps you will need to go through in a liquidation or reorganization bankruptcy. Since U.S. bankruptcy law is quite complicated, it can be difficult to have a clear understanding of some of the terms that are used in discussing bankruptcy law and consumer cases. An important party in a bankruptcy case is the trustee, yet many debtors do not fully understand what a trustee is, or what role the trustee plays in a bankruptcy case. The trustee’s role will depend upon the type of bankruptcy, but in general, the trustee’s job is to administer the bankruptcy estate and to handle issues in the bankruptcy case. Our Oak Park bankruptcy lawyers can explain.
Who is a Trustee?
Bankruptcy trustees are neutral or impartial third parties who are responsible for the debtor’s assets and administering aspects of the bankruptcy case. The court will name the trustee in a bankruptcy case, and then the trustee will have varying duties based on the type of bankruptcy proceeding. According to the Cornell Legal Information Institute (LII), a bankruptcy trustee can be defined as “an administrator appointed by the court to oversee the debtor’s estate in a bankruptcy proceeding,” and the “trustee can evaluate and make recommendations about various debtor demands, but cannot act without approval from the court.”
A trustee is often an individual, but it can also be a corporation, depending upon the specific facts of the bankruptcy case.
General Trustee Duties
In nearly all bankruptcy cases, the trustee’s duties will include reviewing the documentation you have submitted in your bankruptcy case and verifying the information contained in your disclosures and other materials. In so doing, the bankruptcy trustee is tasked with looking for indications of possible bankruptcy fraud. The trustee will also schedule and oversee the meeting of creditors.
Trustee Duties in Specific Types of Consumer Bankruptcy Cases
Specific trustee duties will depend upon whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. In a Chapter 7 bankruptcy case, the trustee is responsible for collecting your nonexempt assets, liquidating those nonexempt assets, and distributing proceeds to creditors based on priority status. The trustee will also review exemptions to ensure that no property identified as exempt should actually be liquidated.
In a Chapter 13 case, since nonexempt assets are not liquidated, the trustee is not responsible for gathering property and liquidating it. Rather, the trustee will be responsible for collecting payments from the reorganization plan and paying creditors. While Chapter 11 bankruptcy is also a type of reorganization bankruptcy, the trustee takes on a bigger role in a Chapter 11 case when it comes to reorganizing debts.
Contact a Bankruptcy Lawyer in Oak Park
If you have any questions about your bankruptcy case or the role of the trustee, you should seek advice from an experienced Oak Park bankruptcy attorney. Contact the Emerson Law Firm to learn more about how our firm can assist you.
See Related Blog Posts:
Five Things to Know About Your Rights Under the FDCPA
Should I File for Bankruptcy if a Creditor Has Threatened to Sue Me?
Who is a Trustee?
Bankruptcy trustees are neutral or impartial third parties who are responsible for the debtor’s assets and administering aspects of the bankruptcy case. The court will name the trustee in a bankruptcy case, and then the trustee will have varying duties based on the type of bankruptcy proceeding. According to the Cornell Legal Information Institute (LII), a bankruptcy trustee can be defined as “an administrator appointed by the court to oversee the debtor’s estate in a bankruptcy proceeding,” and the “trustee can evaluate and make recommendations about various debtor demands, but cannot act without approval from the court.”
A trustee is often an individual, but it can also be a corporation, depending upon the specific facts of the bankruptcy case.
General Trustee Duties
In nearly all bankruptcy cases, the trustee’s duties will include reviewing the documentation you have submitted in your bankruptcy case and verifying the information contained in your disclosures and other materials. In so doing, the bankruptcy trustee is tasked with looking for indications of possible bankruptcy fraud. The trustee will also schedule and oversee the meeting of creditors.
Trustee Duties in Specific Types of Consumer Bankruptcy Cases
Specific trustee duties will depend upon whether you are filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. In a Chapter 7 bankruptcy case, the trustee is responsible for collecting your nonexempt assets, liquidating those nonexempt assets, and distributing proceeds to creditors based on priority status. The trustee will also review exemptions to ensure that no property identified as exempt should actually be liquidated.
In a Chapter 13 case, since nonexempt assets are not liquidated, the trustee is not responsible for gathering property and liquidating it. Rather, the trustee will be responsible for collecting payments from the reorganization plan and paying creditors. While Chapter 11 bankruptcy is also a type of reorganization bankruptcy, the trustee takes on a bigger role in a Chapter 11 case when it comes to reorganizing debts.
Contact a Bankruptcy Lawyer in Oak Park
If you have any questions about your bankruptcy case or the role of the trustee, you should seek advice from an experienced Oak Park bankruptcy attorney. Contact the Emerson Law Firm to learn more about how our firm can assist you.
See Related Blog Posts:
Five Things to Know About Your Rights Under the FDCPA
Should I File for Bankruptcy if a Creditor Has Threatened to Sue Me?
Comments
Post a Comment