If you are experiencing serious money problems and you are intending to go for bankruptcy, it is crucial you have information on the roles of a bankruptcy trustee. For every case filed an impartial trustee is appointed by the court. The roles of the trustees should not be overlooked whether it is filed in chapter 7 or chapter 13. The trustees tends to represent the creditors, but it does not imply that the trustees will always be favorable to the creditors only. Here are some of the roles that the trustees are mandated by the law to undertake

Before getting to know the roles you need to know about the chapter 7 and chapter 13 cases. The chapter 7 case tends to take assets that are not exempt from creditors and liquidate them. The trustees come in when distributing the proceeds from the liquidation. While in the chapter 13 case deals with consumer proposals on ways they can reorganize their financial status while under a repayment plan of three to five years.

A bankruptcy trustee\’s main role is to represent the creditors\’ interests. However, with the verdict given by the court or the various types of cases, this role can change. Although, these professionals act as representatives of the creditors, they also keep an eye on the debtor\’s action. In the case of a chapter 7 case, they are mandated to ensure that the debtor\’s assets are liquidated according to the law.

These trustees can also work on the debtors favor. This is usually happens when they ensure the debtors get their property exceptions according to the particular laws in that state regarding the situation at hand. In the case of a chapter 13 case, they tend to keep an eye on the debtor\’s business actions.

Another role of these firms is to work along side with the debtor during the process. This is to ensure that the debtor\’s business is profitable and smooth running. While, they still check on the debtor whether he or she is working hard to do what is required in the debt settlement arrangement recommended by the court.

These firms have various ways of carrying out their roles. Despite, the way the carry out their business their main role is always to safeguard the concern of the creditors. Therefore, these firms assess an individual\’s proposal on a repayment plan, whether it is viable or not.

In every case, the firm\’s degree of involvement varies depending on the case type among other issues. For example, in the case of chapter 7 cases the firm involvement is limited. While in the chapter 13 cases their involvement is of a higher degree.

In conclusion, a bankruptcy trustee job is complementary. They have to ensure that the debtor is in track with their plan and in the same line still have the welfare of the creditors at hand. The main role that encompasses all the above-mentioned roles is the fact that, they are supposed to ensure that everything that transpires is within the laws and runs along with the verdict of the court.

With over 30 years of experience Bankruptcy Trustee Toronto experts have been helping Canadians just like you.

With over 30 years of experience Bankruptcy Trustee Toronto experts have been helping Canadians just like you.
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Author Bio: With over 30 years of experience Bankruptcy Trustee Toronto experts have been helping Canadians just like you.

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