Who is the Trustee and what do they do? Is the trustee the same as a judge? These are the questions we hear often in our office.

A trustee is appointed in each Bankruptcy case. They are essential to the operation of the bankruptcy system as a whole. The trustee essentially administers a Chapter 7 or Chapter 13 case filed by a debtor and their bankruptcy attorney. 

Collect Non-Exempt Assets

One important responsibility of the trustee is to collect any non-exempt Assets that can be distributed to creditors in a fair and equal manner. In many cases, the trustee will not find any assets available for liquidation or distribution. If there are unexempt assets available for distribution, it is the trustee’s responsibility to sell those assets for the highest possible price. The funds are then paid to creditors in a certain priority that is established by the bankruptcy code. 

You will meet the trustee at your meeting of creditors along with your attorney. The trustee will ask a few questions at your meeting in order to verify your identity and ensure that all the information is true and correct. 

Monthly Payments

If you file a Chapter 13 bankruptcy, the trustee will be responsible for collecting your monthly payment and distributing those funds to all creditors who filed their claims for payment. 

The trustee also ensures all of the correct paperwork is filed and completed by set deadlines. They also ensure the final reports and accounting are completed and issue the discharge and final decree that signifies the case’s completion. 

For more information contact your Yuba City Bankruptcy attorney at (530) 797-4402. 

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