What is a Bankruptcy Trustee?

According to the U.S. Bankruptcy Court for the Northern District of Texas a trustee is "The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the United States trustee or Bankruptcy Administrator."  Simply put, a trustee is responsible for divvying out payment in a Chapter 13 and verifies a debtor's identity and veracity in a Chapter 7.

As soon as a debtor files for bankruptcy, an estate is created.  The trustee manages the estate's day to day transactions. The trustee's main role is to (1) ensure that a debtor is adhering to the Bankruptcy Code and is not committing fraud, (2) ensure that any funds are distributed to unsecured creditors and (3) conduct a creditors' meeting.

Most importantly, the trustee has the power to retract any fraudulent activity.  He/she can also pursue legal action against a creditor on behalf of the debtor.  When considering bankruptcy, it is important to have an experienced attorney to make the most of the advantages filing has to offer.  Fears | Nachawati Law Firm has the training and skill necessary to make a smooth transition.