In Chapter 7 or Chapter 13 bankruptcy filings, a Colorado bankruptcy trustee is assigned to your case. This bankruptcy trustee is overseen by a U.S. Trustee. All trustees have many responsibilities, making sure that all bankruptcy filings are handled truthfully and effectively. Let’s look more closely into the roles of a Colorado bankruptcy trustee and a U.S. Trustee in a Denver area bankruptcy case.
Purpose of a Chapter 7 Bankruptcy Trustee in Greenwood Village
A bankruptcy trustee is focused on your non-exempt assets.
Under 11 U.S. Code Section 704, in a Chapter 7 case a Colorado bankruptcy trustee focuses on gathering assets and paying creditors. If you have non-exempt assets, those assets will be sold to pay creditors. Since trustees are focused on paying debt collectors, their goal is to figure out what property you’re legally able to protect. This is also because bankruptcy trustees are paid by the court based off of property that’s sold. Among other duties, Chapter 7 bankruptcy trustees also make sure any paperwork in your case is accurate and honest.
Role of a Chapter 13 Bankruptcy Trustee in Centennial
Under 11 U.S. Code Section 1302, in a Chapter 13 case bankruptcy trustees are known as “standing trustees”. Some of their duties include approving and monitoring your monthly repayment plan, distributing payments to creditors, or monitoring your monthly income. A Chapter 13 bankruptcy trustee also handles false creditor statements or ones that may have been filed improperly.
Duties of a United States Trustee
Lastly, under 28 U.S. Code Section 586, among many other responsibilities, U.S. Trustees prevent fraud and abuse, ensure professional fees are reasonable for people, and advocate for proper procedures relating to the Bankruptcy Code in court. You can find more information about the U.S. Trustee Program and U.S. Trustees’ responsibilities here.
Have More Questions About Trustees? Contact a Denver Bankruptcy Attorney
Like many other aspects of bankruptcy filing, trustees’ jobs are detailed and complex. Learning about trustees’ roles in your Aurora or Denver bankruptcy case will help you go through your filing process better. If you’re considering Chapter 7 or Chapter 13 bankruptcy filings, contact my office today to schedule a free initial consultation. We will work together to get you on your way to your best, fresh start.
If you would like more information about the roles of trustees, or information about Chapter 7 and Chapter 13 bankruptcy, contact Aurora and Centennial bankruptcy attorney Barry Arrington for a free initial consultation. Contact him today at 303-205-7870.