When a Chapter 7 bankruptcy is filed, an impartial bankruptcy trustee is appointed to oversee and administer the case. The Chapter 7 bankruptcy trustee has many responsibilities that come with this appointment.
Chapter 7 is the most common form of bankruptcy filing. The basic process of liquidation involves the appointment of a trustee, collection of debtor’s non-exempt property by the trustee, sale of debtor’s non-exempt property, and distribution of the amounts received from the sale to the creditors. A Chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. Filing can be done electronically. A Chapter 7 bankruptcy trustee is a person appointed by the U.S. trustee services to administer a bankruptcy case. The trustee reviews the debtor’s bankruptcy petition and verifies the information and calculations using available financial documents and other resources.