Home > What is a Bankruptcy Trustee?
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A
bankruptcy trustee is the person who takes legal
control of the debtor’s property for the
purposes of equitable distribution among the
creditors. In most districts,
bankruptcy trustees are assigned by the
courts. In a few districts, however,
creditors may elect bankruptcy trustees with the
approval of the courts. In
a Chapter 7 proceeding, the bankruptcy trustee
liquidates the debtor’s non-exempt assets
and distributes them to the creditors in the
preference order provided for in the bankruptcy
laws. The trustee may also ask the Court to
dismiss a case if he/she discovers evidence of
fraud, perjury or any other abuse.
In
a Chapter 13 bankruptcy, the trustee holds the
role of reviewing the payment plan, collecting
the payments from the debtor and distributing the
payments to the creditors.
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