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Who is a Bankruptcy Trustee?

In every filed bankruptcy case an impartial trustee is appointed by the United State Trustee, an officer of the Department of Justice. The primary role of the trustee is to act as a representative of the creditor. The trustee's involvement changes with different types of bankruptcy plans. The trustee also has the responsibility to ensure that the debtor's plan runs as smoothly as possible.

There are different ways in which a trustee carries out his responsibility of protecting the interest of the creditor. For example, a trustee can collect property of the estate, object to discharge a debtor may claim, liquidate nonexempt property in the bankruptcy estate and distribute the funds to appropriate creditors.

Watch for additional posts on the role of a Chapter 13 or Chapter 7 trustee.

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