A trustee is a person who has a legal obligation to administer or oversee property in certain cases. During a Chapter 7 bankruptcy, the trustee is one who manages the debtor’s assets while creditors are repaid. Read further to learn more about the trustee’s role in the bankruptcy process.
Trustee Selection
After a person hires a Chapter 7 Lawyer Fall River MA, an interim trustee will be chosen by the US Trustee’s office. This person will schedule a 341 meeting, where a permanent trustee is elected or the interim trustee takes over.
Trustee Election at the 341 Meeting
Creditors may choose the new trustee at a 341 meeting, but only the eligible creditors can ask for an election. An eligible creditor is any that holds 20% or more of the amount a debtor owes, and the creditor must hold a liquidated, fixed, undisputed and unsecured claim. To give a particular creditor a say in the process, a claim must be legally recognized, for a set amount, with no payment guarantee from debtor to creditor. If no eligible creditor makes a request, the interim trustee takes over.
The Trustee’s Responsibility and Role
A trustee’s main purpose is to convert all of a debtor’s non-exempt assets into cash or a payment form to satisfy creditors. Trustees have certain administrative and statutory duties, but they also have certain powers that allow them to do the job. Below is a list of some of the trustee’s powers:
* Seizing assets in the bankruptcy estate
* Hiring related professionals
* Helping debtors operate their businesses
* Selling the debtor’s assets
* Investigating the debtor’s finances
If a Debtor is Unhappy With a Trustee
A trustee can be subject to a lawsuit, and a non-US trustee can be removed for reasonable cause after a notice and hearing. If the trustee vacates the position or resigns, the US Trustee’s office will appoint another person to the position.
Do Debtors Need a Bankruptcy Attorney?
If a person considers bankruptcy, retaining an attorney with the Law Offices of Tara M. George PC is a wise decision. A Chapter 7 Lawyer Fall River MA can help a client get through the complexities and details of a Chapter 7 case, and they can help the client manage the process with a trustee.
