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There are several different types of professionals called trustees
who handle different aspects of bankruptcy cases. Most trustees now
serving are licensed attorneys, but not all. They are not appointed
or employed by the Bankruptcy Court, but their fees and expenses are subject to court approval.
The United States Trustee's Office is a department within the U.S. Department of Justice which
appoints, supervises, audits, and evaluates the performance of the
case trustees, and appoints Creditors Committees in Chapter 11 cases.
It is not part of the Bankruptcy Court and does not have the power
to resolve disputes but handles the administrative aspects of bankruptcy
estates. Call them if you have complaints about an individual trustee's
handling of a case, or evidence of a bankruptcy crime or fraud. They are not allowed to advise private parties of their
rights in bankruptcy.
The U.S. Trustee appoints private individuals to act as trustees in bankruptcy
cases. Chapter 7 (liquidation) cases are handled by members of a
panel of trustees, who are assigned cases on a rotating or geographical
basis. You may hear them referred to as Panel Trustees. Contact
them about buying or repossessing property or with information about
a debtor or estate, but don't ask them for legal advice.
Only one trustee handles all Chapter 13 cases (repayment by individuals
with regular income), and he is designated as the Standing Chapter
13 Trustee. The same trustee handles all Chapter 12 cases as well. Contact him about any matter of administration of any
Chapter 13 or Chapter 12 case, but not to ask for legal advice.
Businesses reorganizing under Chapter 11 are managed by the company's
directors and officers, or owners, as a "debtor-in-possession"
unless the Bankruptcy Court orders the appointment of a trustee.
If ordered, a trustee is appointed by the U.S. Trustee after consultation
with principal parties.
Trustees in all different types of bankruptcy cases are responsible for convening the Meeting of Creditors pursuant to section 341 of the Bankruptcy Code. These meetings are held in various locations throughout the state, depending on where the debtor resides. Creditor meeting locations.
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