Matador Legal » Trustee http://matadorlegal.com/index.php Legal Outsourcing Provider Tue, 25 Aug 2009 05:04:22 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 What is a Bankruptcy Trustee in a chapter 7? http://matadorlegal.com/index.php/2009/05/12/what-is-a-bankruptcy-trustee-in-a-chapter-7/ http://matadorlegal.com/index.php/2009/05/12/what-is-a-bankruptcy-trustee-in-a-chapter-7/#comments Tue, 12 May 2009 17:00:35 +0000 Matador Legal http://matadorlegal.com/index.php/?p=240 In a consumer Bankruptcy in US, a trustee is an individual appointed by the United States department of Justice, or by the creditors involved in the bankruptcy case.

In a Chapter 7 Bankruptcy the trustee gathers the debtor’s non-exempt property, managing the funds from the sale of those assets, and then paying expenses and distributing the balance to the owed creditors.

In a Chapter 13 Bankruptcy the trustee is responsible for receiving the debtor’s monthly payments and distributing those funds proportionally to the bankrupt’s creditors. The Bankruptcy Trustee will act on behalf of the debtor to guarantee that both the creditors’ and the debtor’s interests are maintained in accordance with the bankruptcy laws, and will often be required to act as a negotiator between the two parties.

Source:

http://en.wikipedia.org/wiki/Trustee_in_bankruptcy

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