What Is A Bankruptcy Trustee?
In nearly every individual bankruptcy case, there will be a bankruptcy trustee who has a variety of obligations and powers, depending on the case. The bankruptcy trustee is a central figure in how a bankruptcy case proceeds.
When an individual files for bankruptcy, a legal entity called an estate is created. The estate is comprised of the individual’s assets. The estate is not a person, so a bankruptcy trustee is appointed to oversee and manage the estate, subject to bankruptcy laws. Generally speaking, bankruptcy trustees function similarly to trustees who manage estates of the deceased.
Bankruptcy trustees are part of the U.S. Trustee Program, which is governed by the U.S. Department of Justice. Trustees are responsible for overseeing bankruptcy cases under federal law. In Lake County, there are three bankruptcy trustees. In Cook County, there are 24. Most bankruptcy trustees are either attorneys or accountants. Bankruptcy trustees undergo a thorough vetting and training before being permitted to serve. The court then assigns trustees to specific cases.
What Does A Bankruptcy Trustee Do?
In the simplest terms, bankruptcy trustees look for money to pay the creditors. Trustees can consider nearly everything, including the pursuance of things like malpractice and personal injury claims.
A bankruptcy trustee’s duties vary, depending on the case. For Chapter 7 cases, a trustee:
- Finds and gathers the debtor’s property
- Sells the estate’s property
- Challenges or approves creditor claims
- Distributes money to creditors
For Chapter 13 cases, a trustee:
- Reviews the debtor’s proposed repayment plan
- Makes objections to the plan
- Collects payments from the debtor, pursuant to the repayment plan
- Distributes payments to creditors
How To Contact Me
If you are ready to explore your options with an experienced bankruptcy lawyer, call the Law Office of Paul R. Idlas in Grayslake, Illinois, at 847-986-8862 or contact me online. I offer free initial consultations.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.