When you file for bankruptcy, the entire process is conducted by United States bankruptcy trustee. they are responsible for overseeing the bankruptcy process in federal courts. They are appointed by U.S. attorney general and their duties include:
- enforcement of Bankruptcy Code
- preventing fraud claims
- appointment and supervision of private bankruptcy trustee
- acting as trustee in consumer bankruptcy cases
- referring cases for investigation, prosecution or any other legal action
- convening creditors meeting for the reorganization of debts
- making sure that no unreasonable fees are charged for filing bankruptcy
- ensuring that estate administration is done quickly, efficiently and properly
- making sure that bankruptcy court rules and procedures are followed
- reviewing applications for professional services disclosures
According to Los Angeles based bankruptcy law firm Recovery Law Group once you file for bankruptcy, The U.S. trustee appoints an impartial private trustee to administer your bankruptcy (Chapters 7, 12 or 13). The different chapters of bankruptcy require different actions from the trustee.
Chapter 7 or liquidation bankruptcy
In this case, private trustees are appointed to the panel of U.S. Trustee in the federal judicial district who work on a rotation basis. Their work includes accumulation of non-exempt assets, liquidation of the same and distribution of the funds so generated among your creditors.
Chapter 12 and 13 or reorganization bankruptcies
Trustees for these bankruptcy chapters have a standing appointment for the administration of these bankruptcy cases in specific regions. Both these chapters’ help get rid of debts through a repayment plan. The trustee will gauge your financial condition and recommend a repayment plan (to be completed within 3-5 years) accordingly. Once the plan is evaluated and approved by the court, it is the trustee’s responsibility to administer the plan. They will collect the funds from the bankruptcy filer and distribute them to the creditors.
Though the role played by trustees is vital, however, they are not responsible for providing legal counsel to bankruptcy filers. The bankruptcy trustees’ loyalties lie with the bankruptcy court. To consider your legal interests, you need to hire bankruptcy lawyers. If you are looking to get rid of overwhelming debts that have caused enough personal and financial stress on your life, you can consult with experienced bankruptcy attorneys at 888-297-6023.