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Bankruptcy trustee duties clearly defined in U.S. Code

South Carolina residents who file for bankruptcy are likely to cross paths with individuals who have been appointed as trustees. These persons perform a number of duties related to the type of bankruptcy a debtor filed for and the circumstances of their debt. As such, trustees have to attend and participate in all hearings concerning properties under lien, bankruptcy plans and modification of plans.

Trustee responsibilities include disposing of funds received in Chapter 13 bankruptcy filings, but they can also provide debtors with assistance and advice on how to fulfill the obligations of their bankruptcy plans. Trustees aren't permitted to offer legal advisement, but 11 U.S. Code ยง1302 provides that they may act as go-between agents by issuing written notices to claim holders, state child support enforcement agencies and other parties under certain circumstances, like when an individual's debt is formally discharged.

Trustees also provide notices to claim holders and child support agencies when debtors participate in businesses. In these cases or upon receiving an appropriate request from valid creditors or claimants, they may provide information including a debtor's last known residential address as well as identifying information about their employer or creditors who hold remaining claims.

For those consumers with insurmountable debt but who have a regular source of income, filing for Chapter 13 bankruptcy may be an appropriate course of action. Chapter 13 provides for a restructuring of an individual's obligations and repayment over a period of three to five years pursuant to a plan that must be approved by the trustee. There are eligibility requirements associated with this chapter that a bankruptcy attorney can explain.

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The Huggins Law Firm, PA

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