Bankruptcy Trustee

DEFINITION of 'Bankruptcy Trustee'

A person appointed by the United States Trustee, an officer of the Department of Justice, to represent the debtor's estate in a bankruptcy proceeding.

Although a bankruptcy judge has the ultimate authority on the distribution of assets, the trustee is charged with evaluating and making recommendations about various debtor demands in accordance with the U.S. Bankruptcy Code.

BREAKING DOWN 'Bankruptcy Trustee'

The responsibilities of the trustee are different in a Chapter 7 bankruptcy proceeding (which is essentially a liquidation) than in a Chapter 11 proceeding, wherein the debtor hopes to emerge from the bankruptcy as a going concern. In a Chapter 7 proceeding, the trustee will manage the asset sales and then distribute the proceeds to creditors.

A Chapter 13 proceeding applies to individuals who hope to keep some of their assets in return for repaying certain debts.

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RELATED FAQS
  1. What are the differences between Chapter 7 and Chapter 13 bankruptcy?

    In the United States, the most common kinds of personal bankruptcy filings are under Chapter 7 or Chapter 13 proceedings. ... Read Full Answer >>
  2. How do I get information about my bankruptcy case?

    The vast majority of individuals file for bankruptcy using the services of a bankruptcy professional. A copy of the petition ... Read Full Answer >>
  3. What property / belongings can I keep after filing bankruptcy?

    If you file bankruptcy, particularly a Chapter 7 bankruptcy, property that is considered part of your estate is subject to ... Read Full Answer >>
  4. Can I keep my credit cards after filing bankruptcy?

    When filing bankruptcy, you are required to list all of your credit cards that have a balance. The bankruptcy court sends ... Read Full Answer >>
  5. What is the history behind today's bankruptcy laws?

    Julius Caesar was emperor of Rome for a scant five months, but in that short time he changed the course of financial history. ... Read Full Answer >>
  6. Can a creditor seize my retirement savings?

    Whether a creditor can seize your retirement savings will depend on the type of account in which you are holding your retirement ... Read Full Answer >>
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