The bankruptcy trustee steers the bankruptcy process much like the captain of a ship steers the ship.
The bankruptcy trustee is a third party appointed by the bankruptcy court to oversee a bankruptcy case. Trustees are typically bankruptcy attorneys themselves. The trustee has a responsibility to make sure that a debtor is complying with the bankruptcy rules and was honest on their petition. Trustees evaluate the information the debtor lists in their bankruptcy petition and determines what is necessary to comply with the bankruptcy laws. The bankruptcy trustee steers a case through the bankruptcy process.
Chapter 7 Trustees
A chapter 7 trustee looks at a debtor’s assets to determine if the debtor owns any assets above what she could keep. If so, the trustee will generally sell the unprotected asset and give the money to the unsecured creditors in equal shares. The debtor can typically protect most or all of her property.
Chapter 13 Trustees
A chapter 13 trustee also reviews the debtor’s information for accuracy and reviews assets but has the additional responsibility of making monthly payments to the debtor’s creditors that are being paid in the chapter 13 case. The chapter 13 trustee monitors the case to ensure that the debtor is paying what they should be each month. The chapter 13 Trustee often works closely with the debtor’s bankruptcy attorney to resolve issues that come up in a case.
Information of chapter 13 trustees can be found at www.13network.com.