What is a Chapter 7 bankruptcy Trustee?
Jan Meriss Alfonso Assistant at Ascent Law LLC What Is a Chapter 7 Bankruptcy Trustee? A bankruptcy trustee is a third party who oversees the proceedings in a bankruptcy case. They review bankruptcy documents, look for fraud or abuse, and verify financial information. In bankruptcy proceedings, a trustee has a fiduciary duty to the creditors. They must follow strict legal guidelines. Trustees Chapter 7 bankruptcy trustees are individuals who take on the role of liquidators of nonexempt assets on behalf of bankruptcy filers. They are appointed by the United States Trustee, a division of the Department of Justice. To ensure that their job is properly fulfilled, they must undergo a thorough background check and at least a five-year period of experience in the field. They must also be of sound moral character and physically fit to perform their duties. The job of a Chapter 7 bankruptcy trustee is to sell off the assets of the debtor and distribute the proceeds to the creditors. In ad...