The Role of a Trustee in a Bankruptcy Case
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If you have filed for bankruptcy, the most important person that you will be dealing with is the trustee in your bankruptcy case. Usually the trustee will be an attorney who will be assigned to your case by the court. His or her role will vary depending on whether you have filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy.
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In case of Chapter 7 bankruptcy, the trustee is appointed randomly from a panel of attorneys. He or she will have the responsibility to oversee that your property and assets are sold, and the proceeds from the sale are then divided between the various creditors. The trustee will hold a meeting with the debtor where he or she will find out the details about the property and assets. This meeting is known as the 341 Meeting. In this meeting, the trustee has the rights to even ask questions about assets and property that are exempted from the bankruptcy. If the debtor's answers are not satisfactory, the trustee has the right to seize some of these assets and property for sale to pay the creditors.
When it comes to Chapter 13, the role assigned to the trustee is a little different. Even here the trust holds the 341 Meeting with the debtor. However, the trustee does not have the right to seize assets and property. The role taken on by the trustee is more to analyze the situation at hand and see whether it is possible for the debtor to make monthly payments to the creditors. Also, the trustee may advise the debtor on financial management and offer financial counseling.
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