When your debt has become unmanageable, filing for bankruptcy may be the only viable solution—both for your finances and your peace of mind. Once the process gets rolling, the government will get involved, assigning a bankruptcy trustee to lead your case. If you’re unfamiliar with this figure and their responsibilities, here’s what to expect.

A Brief Guide to Bankruptcy Trustees

What Is a Trustee?

Instead of allowing lenders (such as credit card companies) to continue hassling you for money or leaving the process solely to a judge, the U.S. government hands your debt relief case to a third party—a bankruptcy trustee. These individuals are appointed by the United States Trustee Program, a branch of the Department of Justice, to manage your property and pay back your creditors. While their main goal is to oversee your case with impartiality, their specific duties differ depending on the type you’re filing for.

What Do They Do in Chapter 7?

If you file for this type of bankruptcy, your assets will be collected and liquidated to pay back your creditors. Therefore, the trustee is responsible for taking stock of and selling your real estate, vehicles, and other assets as well as distributing the resulting funds to your creditors.

If they believe that a creditor is claiming that you owe money you don’t, they may challenge these claims. They may also choose whether or not certain types of debt are discharged from your debt.

What Do They Do in Chapter 13?

In Chapter 13, debtors are allowed to hold onto their property. Instead, they must work out a repayment plan to reimburse their creditors over the course of the next several years. In this type of case, trustees must review this repayment strategy as well as make changes as they see fit. They will also collect the payments and make sure the creditors receive their respective sums.

If you’re dealing with mounting debt, learn more about relief by reaching out to Pearce Law Firm of Foley, AL. They have experience with both Chapter 7 and 13 bankruptcy and will be proud to help you establish a promising financial future. In addition to debt relief, this attorney also deals with criminal law and DUI charges and promises a hassle-free experience. To learn more about their practice areas, visit the website or call (251) 971-2676 to schedule a consultation.