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Chapter 7 Trustees
Chapter 7 trustees (also known as panel trustees) are not government employees. They are private citizens appointed and supervised by the Office of the U.S. Trustee (a division of the U.S. Department of Justice) to administer bankruptcy cases under chapter 7 of the U.S. Bankruptcy Code. There are approximately 1,200 chapter 7 trustees in the United States who currently receive new cases. Many chapter 7 trustees are also attorneys or accountants.
Although their obligations are many and varied, chapter 7 trustees must investigate the debtor’s affairs, examine the debtor under oath, and submit reports to the bankruptcy court and Office of the U.S. Trustee. The chapter 7 trustees’ primary goal is to liquidate assets for the benefit of creditors where possible. However, in approximately 90% of the chapter 7 bankruptcy cases filed, there are no assets available for liquidation, either because assets are exempt (protected) by debtors or liened by secured creditors.
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