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What is the role of a Trustee assigned in a chapter 7 or 13 case?

What is the role of a Trustee assigned in a chapter 7 or 13 case?

Under Chapter 7 Bankruptcy, an impartial trustee is appointed to administer the case by collecting and liquidating the Debtor’s non-exempt assets in a manner that maximizes the return to the Debtor’s unsecured creditors.

Under Chapter 13 Bankruptcy, an impartial trustee is also appointed to administer the case. The primary roles of the chapter 13 trustee are to determine the feasibility of a Debtor’s repayment plan for the court and to serve as a disbursing agent, collecting payments from Debtors and making distributions to creditors.

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What is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is also called “straight bankruptcy”. The debtor receives a discharge of all dischargeable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose, so Chapter 7 will give that person a relatively quick “fresh start” without paying back the debt.