The 15 Duties of a Trustee In a Chapter 7 Bankruptcy
The Trustee is the representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is a private individual or corporation appointed in all chapter 7 cases The trustee's responsibilities include reviewing the debtor's petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7, the trustee liquidates property of the estate, and makes distributions to creditors.
11 USC Section 704 lists the 15 duties of a chapter 7 trustee. They are:
1. Quickly collect property of the estate and distribute it to creditors.
2. The trustee is responsible for all property of the estate. If something goes wrong, it is the trustee's fault.
3. Make sure the debtor complies with 11 USC Section 521 (a)(2)(b), which says the debtor has to file all the schedules, statements, and paystubs.
4. Investigate the debtor's finances.
5. Examine and object to improper proofs of claims.
6. Oppose the debtor's discharge if appropriate.
7. Provide a party in interest with information regarding the estate.
8. If the debtor's business is authorized to operate, file business reports.
9. Make a final report and final account of the administration of the case.
10. Provide notice of claims for debtor's domestic support obligations.
11. If the debtor is an administrator of an employee benefit plan, then continue performing the obligations as administrator.
12. Transfer patients from a medical business that is being closed to another medical business.
13. Review all filings of the debtor and file a statement of abuse or no abuse within 20 days after the 341 meeting.
14. Withing 30 days after #13 above, file a motion to dismiss or convert or a motion stating why none of those options are appropriate.
15. In regards to #10 above, provide certain notices the holder's of the claim and the child support agency.