For those of you researching or looking into the possibility of filing bankruptcy, you will have likely seen much written about a trustee that will be involved in your case. All Chapter 7 and Chapter 13 bankruptcy cases are assigned a trustee that falls under the direction of the Department of Justice.
Chapter 7 Bankruptcy
In Chapter 7 cases, the role of the trustee is to obtain information and documentation from the debtor in order to verify the information disclosed in the bankruptcy petition and schedules. Further, the trustee will preside at the Meeting of the Creditors (sometimes referred to as a 341). At the Meeting of Creditors the trustee will place the debtors under oath and ask various questions relating to the truthfulness of the information provided to the bankruptcy court as well as inquire into specific assets. Typically this is a very short meeting. The Chapter 7 trustee will also determine if there are any reasons to object to the exemptions claimed by the debtor or if there is a reason to object to a discharge being entered. In the Chapter 7 bankruptcy cases where there are assets to distribute, the Chapter 7 trustee will oversee that process as well.
Chapter 13 Bankruptcy
In a Chapter 13 bankruptcy, the role of the trustee is much different. While the trustee will review the initial documents filed and preside at the Meeting of Creditors, the trustee will also evaluate the Chapter 13 plan you have proposed, make recommendations, review claims submitted by creditors, accept your monthly payment, and distribute the monies received from your monthly payment to creditors.
In bankruptcy, the trustee is neither your advocate nor your foe, but takes more of an administrative role in processing your bankruptcy case.
If you would like more information on Chapter 7 bankruptcy, Chapter 13 bankruptcy, or general questions about your specific situation, I offer a free bankrutpcy consultation where we can discuss your specific situation. I can be reached at (480) 648-8975.