In a Chapter 7 bankruptcy, nonexempt assets are sold and the funds are used to pay creditors. A trustee is the person who oversees this process.
The Role of the Trustee
The trustee is a person appointed by the United States trustee, an officer of the Department of Justice, to examine the person who filed the case, collect the person’s nonexempt property, and pay the expenses of the estate and the claims of creditors. In addition, the trustee has certain administrative duties in a Chapter 7 case and is responsible for seeing to it that the person filing performs their required duties.
Although the bankruptcy trustee can make recommendations about a debtor's case, he or she can't act without the approval of the court. The court has the final say in the liquidation of assets.
A trustee is required to be appointed in a Chapter 7 case, even if the person filing has no nonexempt property. A person may have no nonexempt property if he or she has a modest home and vehicle with minimal equity.
The trustee is an independent contractor and not an employee of the court. He or she is paid a small fee, plus a commission on any debtor assets or fraudulent transfers he or she is able to find.
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At Steffens Law Office, we're committed to helping hardworking Nebraska residents use bankruptcy protection to get a handle on their debt. Call today to schedule a free, no-obligation initial consultation.