Bankruptcy policies are controlled by the federal government. There is a separate branch known as the United States Trustee Program that supervises different bankruptcy cases. The United States Trustee program employs bankruptcy trustees to different federal districts. In addition, they supervise the bankruptcy trustees. A bankruptcy trustee is there to handle different bankruptcy cases. They are trained to supervise different claims of bankruptcy cases. They deal with creditors and debtors in order to reach a solution for both parties. Trustees have to do everything to make the situation as fair as possible for all parties involved.
The Duties of a Bankruptcy Trustee
Bankruptcy trustees represent the court in bankruptcy cases. They have the job of looking through the documents that were filed by the debtor. Trustees have the job of verifying the information the debtor provided. They also check to see of that debtor qualifies for bankruptcy or if he or she would be better off finding debt consolidation services.
Different Chapters Feature Different Duties
The trustee will have duties that are based on which bankruptcy chapter the debtor is qualified to get. For example, trustees who help a debtor who filed for chapter seven bankruptcy must figure out which of the debtor’s assets are exempt from the liquidation process. That trustee then sells the items that are not exempt in order to pay for the debt that he or she owes. The trustee takes any items that are not exempt from liquidation and manages the entire process of selling those items. Bankruptcy trustees who help a debtor who filed for chapter thirteen bankruptcy have to come up with a repayment option that works for the debtor and the creditors. If this plan is approved by the involved creditors, the trustee then accepts monthly payments from the debtor. He or she then divides this payment between the creditors as stated in the repayment plan. This is not that different from debt consolidation. Trustees are also paid to gather information about the debtor. This includes liabilities, income and assets.
Bankruptcy Trustees and the Law
It is illegal for people to keep information from trustees. It is also illegal to falsify information that is given to trustees. Those who do so face a dismissed bankruptcy case and possible criminal charges. The trustee can inform attorneys, the FBI and the US Trustee Program of possible fraud. These groups will then investigate the fraud and find out what the debtor may be hiding. The United States Trustee Program also audits each trustee. They are checked for criminal or ethical violations.
- License: Royalty Free or iStock source: http://www.depositphotos.com
James R. Yanch is a trusted source in offering advice on debt consolidation, bankruptcy & credit counselling Ajax, Whitby and the surronding Durham Region. Call today to book an appointment and put your financial issues at rest.