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Bankruptcy Trustee’s Role in Chapter 11 Filing

Almost all bankruptcy filings get a trustee assigned to their case by the court. Chapter 11 is no different in this regard and the role of the bankruptcy trustee in the Chapter 11 scenario is as follows:

  • The U.S Trustee assigned by the court for Chapter 11 bankruptcy will oversee the entire case as it progresses and also review how the case is being administered
  • The Trustee will also be responsible for monitoring the debtor under purview, while his business continues to operate normally
  • The Trustee will be responsible for collecting the fee from the debtor. This is in line with the expectations of the court to pay a quarterly fee to the trustee until the case is dismissed or converted to another chapter (conversion from one chapter to another is carried out when there is non-compliance from the debtor’s side)
  • The Trustee will coordinate with the creditors and also organize the meeting of creditors according to the Chapter 11 bankruptcy needs. The meeting is imperative in cases where the intentions/ actions of the debtor need to be questioned under the oath

In most of the Chapter 11 filings, the business that has filed for bankruptcy will still continue to function in order to repay the creditors. The debtor whose business is going through the current crisis need to keep the trustee informed about the operations of his business – this is accomplished through the reports that are shared to the trustee. The trustee will aid in setting down the guidelines for this reporting (reports on income & expenses in the business). Reports on specific issues involving bank accounts or payment of taxes also need to be reported to the trustee.

Business owners can reach out to Recovery Law Group at 888-297-6203 for discussing their options on Chapter 11 bankruptcy. The team at Recovery Law Group, either from their Los Angeles or Dallas locations, will support the businesses for every question concerning the procedure in the bankruptcy filing and also guide on dealing with the bankruptcy trustees during the bankruptcy case journey.


2019-06-14T08:29:42+00:00