Dothan, Alabama
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What Does a Bankruptcy Trustee Do? January 28, 2020

Dothan, Houston
What Does a Bankruptcy Trustee Do?, Dothan, Alabama

Individuals who file Chapter 7 or Chapter 13 bankruptcy are expected to cooperate with their assigned trustees. This person oversees and represents the estate in question, so it’s helpful to understand how they can affect a bankruptcy petition. Here's what you need to know about the duties of a trustee.

Why Trustees Are Needed

Once you file your petition, the U.S. Trustee appoints an individual to represent your estate during the proceeding. In both Chapter 7 and Chapter 13, this person is responsible for reviewing presented documents, verifying that claims are not fraudulent, and submitting recommendations.

Your trustee will always seek the consent of the bankruptcy court before taking any action. After they submit their recommendations, they can significantly influence the approval or dismissal of your case.

Trustee's Responsibilities in Chapter 7

bankruptcyIn Chapter 7 bankruptcy, your trustee's primary duty is to sell nonexempt properties and repay all your creditors as soon as possible. They’re also responsible for gathering your property, challenging creditors' claims, objecting to discharges where appropriate, and conducting the 341 meeting of creditors.

Trustee’s Responsibilities in Chapter 13

Since Chapter 13 bankruptcy involves coming up with a repayment plan instead of selling properties, the trustee's chief duty is to deal with settlements. They’ll handle your payment plan and submit monthly checks to your creditors. Similar to Chapter 7, they’ll hold a meeting of creditors.

Take note that you and your attorney are responsible for coming up with the repayment plan. Your trustee will review this document to determine if you have sufficient income and present objections as necessary.


If you need to prepare for your meeting with creditors or want an experienced attorney to represent you, turn to The Gil Law Firm in Dothan, AL. Since 2000, this esteemed law office has helped clients in Alabama, Georgia, and Florida realize the best outcome for their bankruptcy or debt consolidation cases. Call them today at (334) 673-0100 to schedule an initial consultation. Learn more about their services by visiting the firm's website.

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