Who Is the Bankruptcy Trustee?
The bankruptcy trustee is not a government official, but is a private contractor hired by the U.S. Department of Justice. The role of a trustee is different depending upon whether you file for Chapter 7 or Chapter 13 bankruptcy.
- In a Chapter 7 bankruptcy, the trustee’s primary role is to liquidate the assets that are not protected (“non exempt”) under California law and to distribute the money obtained from the sale among the creditors.
- In a Chapter 13 bankruptcy, the trustee’s role lasts from the initial filing to the end of the three- to five-year payment plan. He or she will be responsible for collecting your payments and distributing the money to your creditors. The trustee also has the ability to initiate a modification of the payment plan.
The trustee can have a significant impact on your bankruptcy case. It can help your prospects to work with bankruptcy lawyers who fully understand the role of the trustee.
For a free initial consultation about filing for bankruptcy with Simon Resnik Hayes LLP, call 888.368.4099 or contact us online. Our offices are open weekdays from 7:00 a.m. to 7:00 p.m., and we serve clients in the Los Angeles area and San Fernando Valley through offices in Sherman Oaks and Los Angeles.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.