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What is a bankruptcy trustee?

Last Updated: October 09, 2009

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A bankruptcy trustee is a private individual (generally an attorney) or corporation appointed in Chapter 7, Chapter 12, and Chapter 13 bankruptcy cases and some Chapter 11 (business bankruptcy) cases. A trustee exercises statutory powers, generally for the benefit of a debtor's unsecured creditors, and is under the supervision of the U.S. Trustee's office. A bankruptcy trustee's responsibilities in a Chapter 7 case include reviewing a debtor's bankruptcy petition and schedules, taking action to recover non-exempt property of the bankruptcy estate, liquidating non-exempt bankruptcy estate property, and making distributions to creditors. In the case of a Chapter 12 or Chapter 13 bankruptcy, the trustee's duties also include reviewing the specifics of a case, receiving regular payments from debtors, and disbursing plan payments to creditors.

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