Browse terms
The bankruptcy process
Trustee
A person appointed to represent the bankruptcy estate, whose duties may include selling estate property and paying creditors. 1
Talk to a lawyerHow it works
In a Chapter 7 case, an impartial case trustee is appointed to run the case and liquidate nonexempt assets. The U.S. trustee makes the appointment, except in Alabama and North Carolina, where the bankruptcy court does. 2
In a Chapter 7 case that has assets, the trustee's main job is to sell nonexempt assets so that unsecured creditors get the largest possible return. 2
In Chapter 13, plan payments go to a trustee, who pays creditors and also reviews the case. 3
In every Subchapter V case, the U.S. Trustee Program appoints a trustee. Most other Chapter 11 cases do not get one. 4
Common questions
Who runs the meeting of creditors?
A trustee runs it. It is not a court hearing and no judge is present. 5
Sources
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