Q What Does a Bankruptcy Trustee Do?
Bankruptcy trustees are officials appointed by the bankruptcy court. They handle administrative duties associated with bankruptcy cases.
In a Chapter 13 filing, a trustee is appointed to oversee the repayment of debts as outlined in the final agreement. The trustee also has the important responsibility of preventing fraud and abuse in relation to the indebted person’s estate.
The trustee also acts as an advocate for the client who files bankruptcy by making sure costs the client incurs are reasonable, and that creditors don’t harass the person. The trustee acts in good faith for all parties involved in the bankruptcy agreement.
Generally, a bankruptcy trustee:
- Reviews all the bankruptcy forms that have been filed in a case
- Oversees the meeting of creditors (341 meeting)
- Preserves the value of the estate and maximizes the amount of money for unsecured creditors
- Determines whether the debtor hid any assets or committed bankruptcy fraud
- Recovers funds that were improperly transferred out of the estate before the filing
- Distributes non-exempt assets to pay creditors
- Makes sure payments are given to creditors on time and in the correct amount
If you're considering filing bankruptcy in Kansas City, our attorneys are here to help. We can answer your questions and help you get back on track. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.