What is a Trustee?
What is a trustee? When this term is applied to bankruptcy, it refers to a person that has been assigned your particular case.
Usually, a bankruptcy trustee is appointed by the United States Department of Justice, though they can also be appointed by creditors that are part of the case. The duties of this person vary according to whether you are filing a Chapter 13 or a Chapter 7 claim. Under Chapter 7, this person will gather your property, sell the property, manage the proceeds, and pay creditors according to the balance owed. Under Chapter 13, this person must gather your monthly payments in order to distribute them to creditors. This is the most basic response to the original question (what is a trustee?), though it can become more complex than this.
Experts Your Questions Now.
Often, the person appointed as trustee will have to act as a fair negotiator between you and your creditors. All trustees must be appointed to a geographical location by the United States Attorney General. These people do not have the power to prosecute, though they are expect to report any criminal bankruptcy activity to the United States Attorney. If you are dealing with a Chapter 11 filing, the trustee that is appointed to your case will monitor all business activity until debts are paid off. In many ways, you can think of these people as constant watchdogs.
If you have filed for bankruptcy for any reason, you will be assigned a trustee. This person does not work for you or your creditors (in most cases), so they tend to be rather fair and unbiased. If you are asked to meet with this person, it is due to the fact that they are responsible for going over all of your assets. While this article answers the original question (what is a trustee?) in its most basic sense, it is not mean to replace any type of legal advice.
From A Bankruptcy Lawyer Now.
In order to fully understand the ins and outs of the bankruptcy system, you must contact a bankruptcy lawyer. In fact, it is wise to have a lawyer on your side while going through these proceedings. This way, you can be sure that you comprehend all of the steps that you will be taking.
What is a trustee? Well, now you know. Consider yours to be the go-between when it comes to you and your creditors.