There are two types of trustees, the trustee who immediately oversees a particular bankruptcy case, and the U.S. Trustee.
A trustee is a private individual or corporation assigned by the bankruptcy court system to oversee a particular bankruptcy case. The trustee’s role in overseeing a bankruptcy involves various functions such as:
Liquidating estate assets for Chapter 7 bankruptcies through auctions
Paying creditors the proceeds from liquidation sales
Establishing which creditors have priority over others to receive payments
Making decisions about disbursement amounts for creditors
Overseeing Chapter 13 payment plans
Receiving debtors' monthly payments and disbursing money to creditors
According to the U.S Courts’ definition of a trustee, the trustee exercises statutory powers, principally for the benefit of unsecured creditors under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administration.
The U.S. trustee works under the Department of Justice and acts a supervisor over private trustees who manage bankruptcy cases. The U.S. Trustee is the individual who actually assigns private trustees to consumer bankruptcy cases. Types of issues that the U.S. Trustee handles are broad and affect the bankruptcy system as a whole. For example, a U.S. Trustee may litigate to correct excessive attorney fees being charged a debtor or may take action against illegal petition preparer practices. Petition preparers are not attorneys and are professionals who offer services and charge for preparing debtors' bankruptcy documentation.
An experienced bankruptcy lawyer at Harold Shepley & Associates can help you with any other questions or guidance regarding bankruptcy. We are a Pennsylvania debt relief law firm, and our attorneys offer a free consultation to discuss your financial concerns. Call 1-866-284-7062 or visit us at www.shepleylaw.com.