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What is a Bankruptcy Trustee?

A bankruptcy trustee is appointed to oversee the liquidation of a debtor’s estate.

A bankruptcy trustee has an obligation to do all he or she can to maximize the amount that a bankrupt entity’s estate can pay to the debtor’s unsecured creditors. The trustee must also challenge the claims of a creditor where appropriate.

The estate is constituted of all of the bankrupt entity’s nonexempt assets. The trustee will oversee the “341” meeting, in the case of Chapter 7 bankruptcy.

Bankruptcy fraud is possible, and the court-appointed trustee is there in part to ensure that this does not happen. The trustee will pay the proportionate amount available to settle with each creditor in turn, and, in the case of Chapter 13 bankruptcy, will receive and dispense the funds from the debtor as part of the repayment plan.

What is Bankruptcy?
What is Bankruptcy Court?

Keywords: repayment plan, Chapter 7, Chapter 13, 341, unsecured creditors, estate liquidation,