What is the distinction between the United States Trustee and a Bankruptcy Trustee?
"If you are contemplating consumer bankruptcy, you have likely heard the term ""trustee"" used multiple times and in various contexts. When it comes to Chapters 7, 13, and 12, a trustee is appointed for your bankruptcy proceeding; meanwhile, the United States Trustee's Office is responsible for safeguarding the integrity of the current bankruptcy program and scrutinizing fraudulent bankruptcy petitions. In what ways do they differ, and how do they cooperate to achieve a common objective?The function of a trustee differs between Chapter 13 and Chapter 7 bankruptcies. The latter, also known as liquidation, requires the trustee to sell the debtor's significant assets and transfer the proceeds to debt collectors in order to settle all outstanding debts. A Chapter 13 trustee only needs to collect a debtor's funds and distribute them to creditors in accordance with the initial repayment plan.A trustee will be present at the meeting of creditors, also known as the Section 341 conference. You will respond to queries based on the details of your own case during this meeting. Your creditors are invited to this meeting, and if they have issues with your repayment plan, they can file a formal complaint. On the other hand, this discussion is typically brief, and it is your trustee's responsibility to assist with any disagreements that may arise. It is likely that a Chapter 7 or Chapter 13 request will be denied if the debtor does not cooperate with their trustee or respond honestly to their queries.The U.S. Trustee's Office has a close relationship with the trustee. Its sole mission is to prevent bankruptcy fraud, but it is distinct from the Bankruptcy Court and actually a component of the Department of Justice. The Trustee's Office will be responsible for carefully reviewing all pending bankruptcies, coaching and coordinating all current trustees, and recognizing and analyzing all bankruptcy filings that appear suspicious and may in fact be an effort at bankruptcy fraud. Although the Trustee is not always directly involved in a bankruptcy case, it may file a petition to have a release revoked or the entire case dismissed. The Trustee's Office is also the location where a debtor can report any issues with a trustee with whom they are working. Although they cannot provide legal services, you can contact the Trustee's Office to inquire about the status of your consumer bankruptcy petition or to report bankruptcy fraud.
" - https://www.affordablecebu.com/
Please support us in writing articles like this by sharing this post
Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.
--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.
"What is the distinction between the United States Trustee and a Bankruptcy Trustee?"
was written by Mary
under the Finance / Wealth
category. It has been read 124
times and generated 0
comments. The article was created on 03 June 2023
and updated on 03 June 2023