Bankruptcy Trustee

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Once you’ve filed your bankruptcy petition, the local bankruptcy trustee or bankruptcy administrator will be in charge of your case and estate. When you enter bankruptcy, all of your property and debts are considered your bankruptcy estate, the trustee will oversee your entire case up until your discharge or your ch 13 repayment plan is completed.

A chapter 7 trustee is responsible for determining if there have been fraudulent property transfers, perjury or if you are eligible to file ch 7 at all. Once the trustee approves your filing, they will liquidate your property that is not exempt if there is any, and distribute the proceeds to your creditors.

A chapter 13 trustee reviews and approves the repayment plan created by the debtor and/or their attorney. Once approved the trustee collects your payments each month and distributes them to your creditors.

Contrary to popular belief, a bankruptcy trustee is not a judge, they are typically appointed to the position and are compensated based on fees they receive from the bankruptcy cases they oversee.

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