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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
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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