Many people in Georgia believe that all they need to do to apply for bankruptcy is to file their paperwork. However, there are many more actions they must take to ensure their cases are handled correctly. One of the very first things that must happen when a person files for Chapter 7 or 13 bankruptcy is assigning the case to a trustee.
A “bankruptcy trustee is a court-appointed individual” who presides over bankruptcy meetings, negotiations and petitions, states The Balance. Bankruptcy trustee duties vary depending on the filer’s circumstances and type of bankruptcy. Some tasks are similar, but there are some key differences that filers should be aware of.
Chapter 7 trustee main duties
When someone files for Chapter 7, their trustee must inventory their assets and property and sell them. They must also sell off the filler’s estate, so they can pay off debts that are associated with the case. In some cases, a trustee might challenge a creditor’s claim if they suspect inaccuracies.
Chapter 13 trustee main duties
Chapter 13 involves the restructuring of debts, so the debtor can repay them. They help the filer come up with a repayment plan that the courts will accept. Trustees also apply all payments they receive from the filer to settle debts from the creditors that are in the repayment plan.
Many trustees are attorneys, but it is not uncommon for some of them to have other professional titles and work in other career fields. They are there to help protect the filer's rights, interests and ensure that everything proceeds according to the law.