During your case
What does a bankruptcy trustee do, and what are they looking for?
A trustee is an impartial person appointed to represent the bankruptcy estate. In Chapter 7 the trustee checks your paperwork and looks for nonexempt property to sell for creditors. In Chapter 13 the trustee reviews your case, collects your plan payments and pays creditors. The trustee is not responsible for giving you legal advice.1 2 3 4
Get the Pro Se GuideThe trustee is the person you will actually deal with in your case. Knowing what the job requires makes their questions and document requests much less alarming.
General information, not legal advice. Rules and amounts change; check with a lawyer or the court before you act.
In this guide
Who is the trustee, and who appoints them?
The U.S. Trustee appoints a private case trustee in every case under Chapter 7, 12 and 13. That case trustee is the person who conducts your meeting of creditors.1 5 6
The names are confusing. The U.S. trustee is an officer of the Department of Justice who supervises the administration of bankruptcy cases and the case trustees. The case trustee is the private individual assigned to your case. In Alabama and North Carolina, bankruptcy administrators do the supervising instead.1 5 6
The U.S. trustee has a part in the means test too. Within 10 days of the meeting of creditors in a Chapter 7 case, the U.S. trustee reports to the court whether the case should be presumed to be an abuse.2
What is a Chapter 7 trustee required to do?
The law lists the duties. These are the ones a person filing a consumer case meets.7
- Collect the property of the estate, turn it into money, and close the estate as quickly as is compatible with the best interests of the parties.7
- Investigate your financial affairs.7
- Make sure you carry out what you said you would do with property that secures a debt.7
- Examine creditors' proofs of claim and object to improper ones, where that would serve a purpose.7
- Oppose your discharge, if that is advisable.7
- File a final report and account.7
What does a bankruptcy trustee look for in Chapter 7?
The duties above explain most of what a Chapter 7 trustee asks about. These are the things the trustee checks, and the reason for each.
| What the trustee checks | Why |
|---|---|
| Whether you listed everything you own2 8 | The estate takes in all your legal or equitable interests in property when the case starts, and you must list everything |
| Your exemption claims8 9 | Property is exempt only if you claim it on Schedule C. The trustee or a creditor may object within 30 days after the 341 meeting concludes |
| Property worth more than its liens and exemptions2 | That is the property a trustee sells for creditors |
| Payments to creditors shortly before filing1 10 | A payment made in the 90-day period before filing, or within one year to an insider such as a relative, may be recovered as a preference |
| Transfers of property1 10 | A transfer made within 2 years before filing with intent to defraud, or for less than reasonably equivalent value, may be undone |
| Whether your documents match your forms5 11 | The trustee receives your proof of income, bank statements and most recent tax return before the meeting |
What if there is nothing to sell?
If all of your assets are exempt or subject to valid liens, the trustee normally files a no asset report with the court, and unsecured creditors receive no distribution. The federal courts say most Chapter 7 cases involving individual debtors are no asset cases.2
The trustee is also required to close the estate without unnecessary delay. A complete and accurate set of papers gives the trustee little to chase.7
How is a Chapter 13 trustee different?
A Chapter 13 trustee has the same kind of review duties, plus overseeing your plan, receiving your payments and paying your creditors. The trustee also appears at the hearing on whether to confirm your plan and at hearings on later changes to it.1 12
By law the Chapter 13 trustee advises you, other than on legal matters, and helps you carry out the plan. The trustee also makes sure you start paying on time, which means within 30 days after filing, even before the plan is approved.1 12 3
The relationship lasts as long as the plan, usually three to five years. During that time you may not take on new debt without consulting the trustee.3
If your circumstances change, say so early. A plan can be modified after confirmation at the request of the debtor, the trustee or an unsecured creditor.3 13
What can the trustee not do?
The trustee cannot act as your adviser. The trustee in your case is not responsible for giving you legal advice.4
The trustee does not decide whether you get a discharge. A trustee may object to it, but an objection is a lawsuit that the court decides.14
And the trustee cannot keep property the law lets you protect. Exempt property is property an individual debtor is allowed to keep from unsecured creditors, provided it is claimed properly.1 8 9
How should you deal with the trustee?
You are required to cooperate with the trustee and to hand over the property of the estate and the records that relate to it.11
Common questions
Is the trustee on my side?
The trustee is impartial and represents the bankruptcy estate. The trustee is not responsible for giving you legal advice.2 1 4
Is the case trustee the same as the U.S. Trustee?
No. The U.S. trustee is a Department of Justice officer who supervises bankruptcy cases and trustees. The case trustee is the private trustee appointed to your case.1 5 6
Can the trustee look at my bank accounts?
Yes. You send the trustee statements for each bank and investment account before the meeting of creditors, and a Chapter 7 trustee is required to investigate your financial affairs.5 11 7
Can the trustee take everything I own?
No. Exempt property is property the law lets an individual debtor keep, and the federal courts say most Chapter 7 cases involving individual debtors are no asset cases.1 2
Will the trustee be at my 341 meeting?
Yes. A trustee runs the meeting, and no judge is present.5
Sources
Official courts & government references- Glossary
- Chapter 7 - Bankruptcy Basics
- Chapter 13 - Bankruptcy Basics
- U.S. Trustee Program: Bankruptcy Information Sheet
- U.S. Trustee Program: Section 341 Meeting of Creditors
- Trustees and Administrators (uscourts.gov)
- 11 U.S. Code § 704(a) (Cornell LII)
- Instructions: Bankruptcy Forms for Individuals (uscourts.gov)
- Federal Rules of Bankruptcy Procedure, Rule 4003(a) (Cornell LII)
- 11 U.S. Code § 548(a)(1) (Cornell LII)
- 11 U.S. Code § 521(e)(2)(A)(i) (Cornell LII)
- 11 U.S. Code § 1302(b) (Cornell LII)
- 11 U.S. Code § 1329(a) (Cornell LII)
- Discharge in Bankruptcy - Bankruptcy Basics (uscourts.gov)
- Federal Rules of Bankruptcy Procedure, Rule 1009(a)(1) (Cornell LII)