When you meet with an attorney to file your bankruptcy case, you’ll likely be told about the “341 Hearing”, or “Meeting of Creditors”. This is a required meeting in all Utah bankruptcy cases and you are required to attend. Your attorney will probably mention that a bankruptcy trustee will be present at that meeting, and at that point you may wonder, “what is a trustee?!” Who are bankruptcy trustees? The dictionary definition of a Trustee is, “A person or agent holding legal title to and administering property for a beneficiary.” So in other words a bankruptcy trustee has “legal title to” what’s known as the bankruptcy estate or the debtor’s property. A trustee is in essence a referee appointed by the federal court to administer your case and make sure that all parties involved play by the rules. The two most common kinds of bankruptcy in Utah are under Chapter 7 and Chapter 13. The following are their basic responsibilities of the trustee under these kinds of cases:
Chapter 7 liquidation bankruptcy case:
-The trustee is in charge of rounding up all of a debtor’s property;
-The trustee is in charge of selling the bankruptcy estate’s property;
-The trustee is in charge of challenging creditors’ claims, where appropriate;
-The trustee is in charge of distributing proceeds to creditors;
-The trustee is in charge of objecting to a bankruptcy discharge where grounds exist
Unlike the gathering and sale of property that is involved in Chapter 7 liquidation bankruptcy, debtors in Chapter 13 reorganization bankruptcy keep possession of their property during the course of the bankruptcy. A trustee’s main duties in these cases deal primarily with handling payments.
Chapter 13 reorganization bankruptcy cases:
-The trustee is in charge of reviewing the debtor’s proposed repayment plan;
-The trustee is in charge of making objections to the plan, as necessary;
-The trustee is in charge of receiving/collecting payments from the debtor pursuant to the established repayment plan;
-The trustee is in charge of distributing payments to creditors.
So who are bankruptcy trustees?
If you are looking for information on bankruptcy trustees in Utah you can download my FREE book on filing bankruptcy in Utah to get the up-to-date list of the Trustee’s and their contact information. If you are looking for an experienced Utah bankruptcy lawyer give us a call to set up a consultation and to learn your bankruptcy options.