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Bankruptcy - What is a Trustee?A trustee in bankruptcy is an official that is appointed by the court to administer the debtor's estate. The trustee is under the supervision of the bankruptcy administrator or U.S. trustee. In a Chapter 7 bankruptcy a trustee would be responsible for liquidating and distributing the property of the debtor as permitted within the discharge of the bankruptcy case. A trustee is also responsible for reviewing the bankruptcy case for fraudulent activities, such as hidden assets that should be included for eventual distribution to creditors. The trustee may bring action to a debtor or a creditor for inappropriate procedures during the course of the bankruptcy case. A trustee also has the option of bringing a dismissal forward or contesting certain claims if there is supporting evidence during the course of the bankruptcy case. In a Chapters 12 and 13 Bankruptcy, a trustee is responsible for reviewing the plan of the debtor and collecting and distributing the payments of the debtor as allowed by the court. The description above is not a comprehensive legal definition but rather an informal description of the term and how it may be used in a case involving bankruptcy. |
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