If you are filing for bankruptcy in the state of Georgia you may have heard the term “bankruptcy trustee”, but you may not know what that is or why they exist.
What is a bankruptcy trustee?
During a bankruptcy proceeding, the court will appoint someone to oversee and manage the debtor’s estate. This administrator is a bankruptcy trustee.
What does a bankruptcy trustee do?
The duties of the trustee depend on the type of bankruptcy in question. In a Chapter 7 bankruptcy, the court liquidates the debtor’s assets and the creditors are repaid with the money from the sale. If you filed for Chapter 7, the trustee will oversee the sale of all nonexempt property. They will also administer the distribution of the proceeds among the creditors, ensuring a fair distribution of funds.
A Chapter 13 filing allows the debtor to restructure debt to make it more manageable to repay. During a Chapter 13 case, the trustee’s job is to receive the filer’s monthly debt payments and distribute them to the appropriate creditors per the court-approved repayment plan.
Can you choose your own bankruptcy trustee?
You do not choose a bankruptcy trustee; the court assigns you one. The United States Trustee Program is an arm of the Department of Justice that oversees all bankruptcy cases and their administration across the country. The court will choose your trustee from the US Trustee Program in your area.
A bankruptcy trustee is a court-appointed administrator who facilitates the nuts and bolts of bankruptcy in the United States. This person ensures the fair application of bankruptcy laws to all involved parties.