Role of The Trustee in A Bankruptcy Proceeding
A trustee is assigned by the court to oversee every bankruptcy case. The trustee has two primary responsibilities in these proceedings. The first is to ensure that the process continues to move forward as smoothly and efficiently as possible. The second is to represent the interests of creditors seeking to recover the debts that are owed to them. In more complex cases, there can be a number of other responsibilities for the trustee.
When a person files for bankruptcy, there can be a lot of anxiety around the trustee and whether he or she is a friend or foe. At the law offices of [nap_names id=”FIRM-NAME-3″], we provide comprehensive bankruptcy services to individuals and businesses throughout New Jersey. When you hire our firm, we will walk you through the entire bankruptcy process and help you understand the role of a trustee in bankruptcy.
Different Responsibilities for Different Filings
- The trustee’s role in a Chapter 7 bankruptcy: In a Chapter 7 bankruptcy, the trustee reviews all of your nonexempt property. In the overwhelming majority of cases, a trustee will find that your exemptions cover all your property. Your attorney will review all of your exemptions with you in detail.
- The trustee’s role in a Chapter 13 bankruptcy: The trustee’s role in a Chapter 13 bankruptcy looks much different from his or her role in a Chapter 7 bankruptcy. In Chapter 13 bankruptcy proceedings, the primary focus is on managing the debtor’s payment plan. The trustee is responsible for collecting the debtor’s monthly payment and distributing the funds to the creditors. It would also be the trustee who would follow up on missed payments or take action if you were to stop making payments completely.
- The trustee’s role in a Chapter 11 bankruptcy: In a Chapter 11 bankruptcy, as a debtor in possession, you are your own trustee. You will run your own bankruptcy in hopes of having a plan confirmed.
For More Information About The Trustee’s Role in Bankruptcy
With offices in Toms River and Neptune City, our lawyer is prepared to help you with any bankruptcy-related matter. Evening and Saturday appointments are available. Call local: [nap_phone id=”LOCAL-REGULAR-NUMBER-8″] or fill out our contact form.