What You Should Know About Bankruptcy Trustees

Posted by Wesley Scott on July 19, 2019 at 10:25 AM
Wesley Scott

Minneapolis-Bankruptcy-Lawyers-To-Watch-Out-ForOne of the key players in any bankruptcy is the trustee. The trustee is an appointed court official who is assigned to, essentially, be the neutral party between the debtor and the creditors. Most of the trustees work is behind the scenes. The trustee is meant to be a type of mediator and go-between so that both sides of a bankruptcy are equally represented.

The trustee will work with the debtor’s attorney to make sure the courts have what is needed for the bankruptcy filing and notify the debtors listed creditors of any changes to the case. They will also work with creditors, their attorneys, and collection agencies to send out notices and reminders to file claims. The trustees send out any notices of court hearings or other case-related goings-on to both debtor and creditor.

The primary duty of the trustee is to collect payments from the debtor and distribute the money amongst the creditors in a Chapter 13 bankruptcy.  The trustee can also evaluate creditor claims, investigate the debtor’s finances, value a debtors assets, or create repayment schedules for the debtor.

The trustee can also request documents from the debtor or creditors, object to claims, or object to discharging a filer’s debt entirely.

The trustee is put in place to ensure a fair and just execution of a bankruptcy filing from start to finish for both creditors and debtors. They are there to make sure the playing field is level and that the entire process is on the up-and-up.

With so many moving parts and people involved in the bankruptcy process, having a constant official in the trustee is important to ensure that the bankruptcy process is as smooth and as by the books as possible.  

Conclusion

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