If you are planning to file for bankruptcy to get out of deep financial trouble, it is imperative that you arm yourself with the role of a bankruptcy trustee in this area. A court usually appoints an impartial trustee for every case that is filed. Regardless of whether you are filing under chapter 13 or chapter 7, the role of a trustee cannot be ignored. A trustee will represent a creditor in all cases, but this does not necessarily mean that the trustee will always favor only the creditors. The primary duty of a trustee is in fact to ensure that everything is done in accordance with the law and in line with the courts’ judgment.
The primary duty of a trustee such as Cooper & Co. Ltd is to represent the interest of the creditors. This role however, changes depending on the various kinds of cases and the judgment passed by the bankruptcy court.
Usually, these trustees represent the creditors, however, depending on the case it is their responsibility to keep an eye on the actions of the debtor’s. If it is a chapter-7 case for instance, their responsibility is to ensure that all the properties and assets of the debtors are liquidated in compliance with the law. Concurrently, they also function in favor of the debtorsbuy ensuring that they receive the properties exceptions in line with the specific laws of that state. If it is chapter-13 case on the other hand, the bankruptcy trustee will keep an eye on the business activity of the debtor. Sometimes they go as far as working together with a debtor so as to achieve a profitable and smooth running of the business for the debtor. Concurrently, they also keep an eye on a debtor to find out if he/she is meticulously working on the repayment plan which is suggested by the court.
There are different ways in which a bankruptcy trustee Scarborough discharges its duties. Whatever the procedure which they follow, the ultimate goal is to protect the interest of the creditors at all times. For instance, a trustee can help in distributing the funds to the appropriate creditors, he or she may object to discharge, or some exemptions which might be claimed by a debtor, liquidate nonexempt property in an estate, collect property of an estate, etc.
The extent of involvement of a trustee differs for various types of bankruptcy. For instance, the role of a trustee in chapter 7 bankruptcy is very limited. The degree of involvement in chapter 13 is even more. Nevertheless, their job is multilayered in chapter 11.
In all, it is evident that the role of a bankruptcy trustee is a balancing role. They do not only have to protect the interest of the creditors, it is also their responsibility to provide help in the smooth running of the debtor’s plan. There is a body in the United States known as “the United States Trustee” which is saddled with the responsibility of appointment of trustees.
The role of a bankruptcy trustee is an important one. When a bankruptcy court passes a judgment on a case, it is the responsibility of the trustee to ensure that the money realized from the liquidation of the assets of a debtor is adequately shared among the creditors.