A Chapter 7 trustee is person who is appointed by the bankruptcy court. The Trustee acts as an officer of the court to make sure that both the debtor’s and the creditors’ interests are protected. The Trustee makes sure that the case is administered in accordance with federal bankruptcy laws.
During a Chapter 7 bankruptcy, the trustee receives all of the debtor’s assets that are not exempt from seizure under the state laws where the bankruptcy is filed. The Trustee may sell property to obtain money to pay expenses, and pay net sale proceeds to the listed creditors.
Sometimes, a trustee is agreed upon by the creditors who are involved in a bankruptcy case. The trustee must be licensed and must be registered to meet specific qualifications to administer bankruptcy cases.
If you have any questions about bankruptcy, you should contact an experienced bankruptcy attorney.
-Kent S. DeJean