If you have done any sort of research into bankruptcy, you’ve likely seen one word pop up over and over again:
Trustee
But what exactly is a trustee? Who are they and why should you, our dear reader, care about them? Join us for this week’s blog as we unpack the “trustee” and finally answer all of your most burning questions.
First off, what exactly is a trustee? A trustee is an administrator appointed by the United States Trustee Program to oversee bankruptcies across the nation. Their specific goals vary with what chapter bankruptcy they are overseeing.
For a chapter 7 bankruptcy, the Trustee’s goal is to oversee the bankruptcy estate. When someone files a chapter 7 bankruptcy, all of their assets are put into this estate and technically belong to the trustee while the bankruptcy is proceeding. The trustee is then expected to liquidate whatever assets are not protected and use those proceeds to repay creditors. The trustee also review the debtor’s finances to make sure everything has been accounted for. Lastly, they ensure strict compliance to the bankruptcy code and that all laws have been followed.
In a chapter 13, the trustee still has similar goals, but rather than liquidating assets, trustees accept payments from debtors and distribute that in order of priority to all of a debtor’s creditors. Unlike a chapter 7, the property in a chapter 13 remains the debtor’s unless the court orders otherwise. The trustee must also monitor the cases to make sure debtors are meeting their obligations.
It’s important to note that the trustee does not represent you. At the end of the day, their goal is to oversee the bankruptcy and make sure creditors get paid where they can in a neutral manner.
However, if you do want an attorney that is 100% on your side, then look no further than Minnesota’s nicest bankruptcy attorneys.
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
LifeBack Law is here to guide you through the bankruptcy process with compassion, kindness, and empathy. If you have been considering bankruptcy, head to www.lifebacklaw.com and schedule a free consultation today.
