A bankruptcy trustee oversees the bankruptcy process. First, they conduct what’s known as the Section 341 meeting, which refers to the section of the Bankruptcy Code that governs it. The trustee oversees a brief 5- to 10- or 15-minute meeting or hearing where basic yes-or-no questions are asked of the person filing, just to make sure everything is in order.
In a Chapter 13 bankruptcy, the trustee’s office oversees much of the court approval process and the legal aspects of the case. They also handle the disbursement of the monthly payments to creditors in a Chapter 13.
In a Chapter 7 bankruptcy, the trustee prepares a report where they double-check whether there are any non-exempt assets that could be used to pay something back to creditors. In 99.9% of situations, the answer is no—there’s nothing for creditors to receive.
So, a bankruptcy trustee is essentially someone appointed to oversee the administration of the bankruptcy case.
