|
Trustees
Generally,
the trustee in a bankruptcy proceeding has the following duties, which
vary depending on the bankruptcy chapter filing:
- Collect
and reduce to money the property of the estate and close the estate
as expeditiously as is compatible with the best interests of parties
in interest.
- Be accountable
for all property received.
- Investigate
the financial affairs of the debtor.
- Examine
proofs of claims and object, if necessary to the allowance of any claim
that is improper.
- If advisable,
oppose the discharge of the debtor.
- Furnish
information concerning the estate as is requested by a party in interest.
- If the
debtor's business is being continued, file periodic reports with any
governmental tax collecting agencies.
- Make a
final report and file a final account with the court of the administra-tion
of the estate.
- File a
bond with the court in favor of the United States conditioned on faithfully
performing his or her duties.
- Ensure
that the debtor begins making timely payments for administrative expenses
and percentage fees for any private, standing Chapter 13 trustee.
- Ensure
that the debtor makes timely payments to creditors.
In addition
to the above duties, the trustee has the power to use, sell, or lease
the property of the estate. When not acting in the usual course of business,
the trustee may do so only after notifying all interested parties and
holding a hearing.
The compensation
structure does not provide the trustee with an incentive to pursue assets
where substantial investigation is required and recovery is speculative.
Thus, to attract the trustee to pursue assets in a so-called "no-asset
Chapter 7," vendors must fund the trustee's recovery efforts.
Source:
"Manual of Credit and Commercial Laws," edited by Charles M.
Tatelbaum and John K. Pearson, available at the NACM
Bookstore.
|
|
