Are you facing a financial turmoil and planning to file a bankruptcy case? Knowing the role of bankruptcy trustee is of prime importance for you then. For each trial, an impartial trustee is appointed by the court. Trustee represents the creditors. This is done in order to ensure that everything is executed in accordance with the law.
Role of Bankruptcy Trustee
The major duty of a trustee is representing the creditors. The role of bankruptcy trustee changes depending on the type of judgment and cases in consideration. Being the representative of creditors does not mean that they will act just in support of creditors. As per law, properties and assets of debtors have to be liquidated. These have to be ensured by the bankruptcy trustee. Simultaneously, they lend full cooperation to debtors by providing them property exceptions. Another job of bankruptcy trustee is to keep an eye on business activities of the debtor. The trustee also sees to the working of the debtor regarding repayment plans recommended by the court.
Working of a Bankruptcy Trustee
There is no limited way in which a bankruptcy trustee works. No matter what policy they follow, the prime objective is to work in the interest of creditors. Distributing funds, collecting the property in the estate, etc. are a few services provided by the bankruptcy trustee. The bankruptcy associations provide all such services.
The Degree of Involvement of Bankruptcy Trustee
As mentioned earlier, the extent to which a bankruptcy trustee gets involved depends on the type of bankruptcy. In some cases, the trustee has a limited role while in others the degree of involvement is comparatively more. Sometimes jobs of trustees are multi-layered. Bankruptcy Ottawa, the association excels in dealing with all kind of bankruptcy cases. Looking at the bigger picture, we can say that the job of bankruptcy trustee is merely a balancing activity. Providing assistance to debtors and working in favors of creditors are two jobs they have to smoothly perform.