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Understanding the role of a bankruptcy trustee is essential

On Behalf of | Jul 3, 2023 | Bankruptcy |

If you’re filing for bankruptcy in New Jersey, one of the key individuals working on your case will be a bankruptcy trustee. They’re in charge of managing the process of distributing the property involved in all bankruptcy types. The U.S. Trustee appoints them, and their specific responsibilities depend on the bankruptcy type.

What is the role of a bankruptcy trustee?

A bankruptcy trustee can be involved when you undergo a Chapter 7, Chapter 11 or Chapter 13 bankruptcy. However, Chapter 11 cases typically don’t require the assistance of a bankruptcy trustee. For a Chapter 7 bankruptcy, their primary duty is managing the liquidation of your assets. After they are sold, the bankruptcy trustee will oversee the distribution of proceeds to creditors.

During a Chapter 11 bankruptcy, a bankruptcy trustee can work with you to try and help you get through your bankruptcy if you’re a business and want to continue operations. If you’re going through a Chapter 13 bankruptcy, a trustee ensures that you are making your payments in a timely manner.

Chapter 7 trustee duties

A bankruptcy trustee has many duties when handling a Chapter 7 bankruptcy. The first is to review all the information in the bankruptcy petition. They will also gather relevant evidence to verify your calculations and statements and pay creditors.

Chapter 13 trustee duties

Like a Chapter 7 bankruptcy, a bankruptcy trustee will review all your information in the bankruptcy petition when working on a Chapter 13 bankruptcy. They will also assess your income information and proposed repayment plan.

The bankruptcy trustee works on the bankruptcy court’s behalf. They do their best to move through the process successfully. If you’re involved in a bankruptcy case, providing all the information they need can help make your case go smoothly and quickly.