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The Trustee for Chapter 7 Cases

The Trustee for Chapter 7 Cases
"""A case trustee is appointed by the U.S. trustee following the filing of a chapter 7 petition. This individual is responsible for administering the case and liquidating any assets designated as non-exempt.

If all of a debtor's assets are exempt, no payments will be made to unsecured creditors, and the case trustee will typically file a report with the court stating """"no assets.""""

Governmental units will have 180 days from the date the claim was lodged to file a claim, while unsecured creditors will only have 90 days following the first date of the creditors' meeting. In the vast majority of Chapter 7 cases, there will be no distribution, so creditors are not required to file proofs of claim.

What is a trustee's role?

In cases involving assets, the trustee's primary responsibility is to liquidate the nonexempt assets of the debtor in order to maximize the return to the debtor's unsecured creditors. The trustee will only sell nonexempt, lien-free property belonging to the debtor.

Moreover, if the debtor is a business and not an individual, the trustee may be granted the authority to conduct business operations for a limited period of time if it is determined that doing so will expedite the estate's liquidation and benefit creditors.

In Chapter 7 bankruptcy, the debtor's primary objectives should be to retain exempt property and obtain a discharge of as many of their debts as feasible.

" - https://www.affordablecebu.com/

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"The Trustee for Chapter 7 Cases" was written by Mary under the Finance / Wealth category. It has been read 66 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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