A bankruptcy trustee plays a key role in managing a bankruptcy case. If you file for bankruptcy, this person oversees your assets, reviews your financial situation, and ensures that debts are handled according to the law. Understanding their role can help you know what to expect during the process.
Duties of a bankruptcy trustee
The trustee’s primary job is to review your bankruptcy paperwork and financial records. They verify the accuracy of your income, assets, and debts. If you file for Chapter 7, the trustee may sell non-exempt property to pay creditors. In Chapter 13, they oversee your repayment plan and distribute payments.
How a trustee affects your case
The trustee can challenge improper claims from creditors, ensuring fairness. They may also object if they find errors in your paperwork or believe you’re hiding assets. If everything is accurate, the trustee moves the case forward, making sure you comply with bankruptcy laws.
Can you communicate with the trustee?
Yes, but only within certain limits. The trustee is not your legal representative, so they can’t give legal advice. However, they may ask for more documents or clarification about your finances. You typically interact with the trustee during the required meeting of creditors.
What happens after the trustee’s review?
Once the trustee completes their review, they either distribute funds to creditors (Chapter 7) or continue managing your repayment plan (Chapter 13). If there are no disputes, the case moves toward discharge, which eliminates qualifying debts.
A bankruptcy trustee ensures a fair process for both you and your creditors. Knowing their role can help you prepare for each step in your case.
