ANSWERS: 1
  • The bankruptcy court official charged with overseeing a Chapter 7 bankruptcy on a day-to-day basis is known as the trustee. There are rare situations in which a Chapter 7 trustee is removed from a case. If you are considering filing a Chapter 7 bankruptcy, understanding the causes for removal of a Chapter 7 bankruptcy trustee is helpful.

    Function

    The function of a Chapter 7 bankruptcy case is to permit a debtor the ability to obtain a discharge of her debt. Through a discharge, a debtor no longer is liable to creditors.

    Considerations

    A demonstration that a bankruptcy trustee is biased, has a conflict of interest or is personally benefiting from his connection to a case all represent causes for removal of that trustee.

    Significance

    Removing a bankruptcy trustee from a case is a major step by the court. Therefore, the evidence that his continued association with a case is not appropriate must be significant and direct and not merely circumstantial.

    Identification

    Identifying one or another of the causes for removal of a Chapter 7 bankruptcy is crucial. Keep a contemporaneous record of any actions or conduct by a trustee that is inappropriate.

    Warning

    If you have concerns about the conduct of a Chapter 7 bankruptcy trustee, your interests and rights are best protected if you seek legal representation. You can obtain the names of bankruptcy attorneys from the state or local bar association.

    Source:

    "The Glannon Guide to Bankruptcy: Guide to Bankruptcy;" Nathalie Martin; 2006

    U.S. Bankruptcy Code

    Cornell Law School: Bankruptcy Overview

    More Information:

    American Bar Association: Bankruptcy & Insolvency Litigation Committee

    American Bar Association: Directory of State and Local Bar Associations

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