The role of the trustee in an Arizona Banktuptcy
When someone files for bankruptcy, they are immediately assigned a “trustee”. A trustee is similiar to a referee. They work between the debtor and creditors to ensure that both are treated equally. They are appointed to examine your case, finances and assets. The trustee look over your assets for any nonexempt property that can be sold, handle the sale of it, distribute the liquidated property equally among creditors with valid claims and report this to the court. The trustees are by no means out to get the debtor; they are required to follow certain rules laid out by bankruptcy law. A trustee is selected from a “panel” of private trustees established by the Executive Office of the US Trustee. After the date of filing, the trustee will send a letter to the debtor requesting certain documents. The 341 hearing is assigned for just about six weeks after the date of filing, during those six weeks the trustee has time to figure out ifhere are any loose ends or questions they have for the debtor which they will ask at the 341 hearing. The 341 hearing is known as the “meeting of creditors” and is conducted by the trustee. Even though the hearing is called that, creditors rarely show up at the meeting.