A trustee is assigned in all Chapter 7, 12, and 13 cases, and in some Chapter 11 cases. In Chapter 12 and Chapter 13, the trustee is called the “standing trustee.” Throughout the duration of those two Chapters it is likely that the trustee will remain the same. In Chapter 7 cases there are two dozen trustees assigned to your case by rotation. They are called a “panel trustee.”
The trustee’s responsibilities are as follows:
- to administer the bankruptcy case or the bankruptcy estate
- to make certain creditors are treated according to guidelines of the Bankruptcy Code
- to preside over the meeting of creditors
- to collect and sell non-exempt property, as in the case of a Chapter 7, or collect and pay out money from a repayment plan, as in the case of a Chapter 12 or Chapter 13
- the trustee can request information and documents, either before, during, or after the meeting of your creditors.
If you fail to cooperate with the trustee your discharge may be denied. Trustees are usually, but not always, attorneys. They are appointed by the United States Trustee. Their fees come out of your bankruptcy filing fees or out of the money collected in your bankruptcy case.
The trustees do not represent you; they work on behalf of the bankruptcy estate and all of its creditors. In other words, they are not your bankruptcy attorney.
The United States Trustee’s Office is part of the U.S. Department of Justice. It is separate from the court. The United States Trustee’s Office is a “watchdog” agency. The U. S. Trustee’s Office is charged with monitoring your bankruptcy case, appointing and supervising all of your trustees, and identifying any fraud. The Office can give you information about the status of your case, but cannot give you any legal advice. You may contact them if you are having problems with a trustee, or if you have evidence of fraud in a case. The Office does not administer a specific case. It reviews all bankruptcy petitions and pleadings filed in a case, and participate in many of the proceedings. The trustees appointed by the U.S. Trustee’s Office administer the cases. They are able to file motions in a bankruptcy case, such as a motion to dismiss the case or convert it to another Chapter.
Kevin D. Heupel, Colorado personal bankruptcy lawyer
personal bankruptcy free-consultation form
legal hotline:303-955-7570
