Once you file bankruptcy, a court appointed bankruptcy trustee will oversee your case. The new law also requires that the bankruptcy petitioner to take a debtor education course and receive credit counseling from a U.S. Trustee approved non profit credit counseling agency.
United States Trustees supervise the administration of the following cases filed under the Federal Bankruptcy Code:
* Liquidation proceedings under Chapter 7 bankruptcy- Those assets that are not exempt from creditors are collected and liquidated (reduced to money). The proceeds are distributed to creditors by a private trustee appointed to administer the debtor’s estate under Chapter 7.
* “Wage-earner” reorganization proceedings under Chapter 13- Chapter 13 bankruptcy- , is used primarily by individual consumers to reorganize their financial affairs under a repayment plan that must be completed within three to five years. A “standing trustee” appointed by the United States Trustee typically serves as a trustee of the U.S. Bankruptcy Court where the case was filed.
Specific responsibilities of the United States Trustees include:
* Appointing and supervising private trustees who administer Chapter 7, 12 and 13 bankruptcy estates (and serving as trustees in such cases where private trustees are unable or unwilling to serve).
* Taking legal action to enforce the requirements of the Bankruptcy Code and to prevent fraud and abuse.
* Referring matters for investigation and criminal prosecution when appropriate.
* Ensuring that bankruptcy- estates are administered promptly and efficientlyHealth Fitness Articles, and that professional fees are reasonable.
* Appointing and convening creditors’ committees in Chapter 11 business reorganization cases.
* Reviewing disclosure statements and applications for the retention of professionals.
* Advocating matters relating to the Bankruptcy Code and rules of procedure in court.
ABOUT THE AUTHOR
Original content from bankruptcyhome.com can contact at info@bankruptcyhome.com
