Understanding the Role of a Bankruptcy Trustee in Your Case
When filing for bankruptcy, you’ll likely encounter a bankruptcy trustee at some point in the process. But who are they, and what role do they play in your case? Here’s everything you need to know about bankruptcy trustees.
Who Is a Bankruptcy Trustee?
A bankruptcy trustee is a person appointed by the United States Trustee, an officer of the Department of Justice, to oversee bankruptcy cases and represent the debtor’s estate. They are responsible for ensuring that bankruptcy cases are handled in compliance with the U.S. Bankruptcy Code.
The U.S. Trustee program divides the United States into 21 regions. Kansas is part of Region 20, with its regional office in Wichita, Kansas. Missouri is part of Region 13, with its regional office in Kansas City, Missouri.
What Does a Bankruptcy Trustee Do?
The role of a bankruptcy trustee varies depending on whether you file for Chapter 7 or Chapter 13 bankruptcy:
- Chapter 7 Trustees:
- Appointed randomly from a panel of trustees in the judicial district.
- Administer cases to review for non-exempt assets that may be liquidated to pay creditors.
- Ensure that creditors receive appropriate payments from the liquidation process.
- Chapter 13 Trustees:
- Appointed to a specific region.
- Review cases for any issues related to plan confirmation.
- Collect plan payments from the debtor and distribute them to creditors.
- Ensure the debtor complies with the terms of their repayment plan.
What to Expect at Your 341 Meeting
You will meet your assigned trustee during the 341 Meeting (Meeting of Creditors), which occurs approximately four weeks after your bankruptcy case is filed. This meeting is typically straightforward and involves:
- Verifying your identity.
- Answering questions about your bankruptcy petition and financial situation.
- Confirming that your documents are accurate and complete.
In March 2020, 341 Meetings started to be held by phone for safety reasons. Now, they are held by ZOOM. Your trustee will guide you through the process, and your attorney will prepare you in advance to ensure everything goes smoothly.
Why You Should Consult an Attorney
Navigating bankruptcy laws and trustee interactions can be overwhelming. At Walden Legal Solutions, we provide personalized guidance to help you understand the process and protect your rights.
Schedule your stress-free consultation today.
