According to Aurora bankruptcy attorney, David Siegel, the role of the trustee is very important in bankruptcy. The trustee in a Chapter 7 bankruptcy case is appointed by the bankruptcy court and is essentially the manager of the bankruptcy case. The trustee is the person that verifies that the bankruptcy petition information is true, correct and accurate. They are also the ones that will distribute any assets that he or she may find in a Chapter 7 bankruptcy and that trustee will distribute it for the benefit of the creditors and pay back creditors if it is possible.
The role of the trustee in a Chapter 13 case is somewhat similar but very different in the sense that the trustee is in charge of receiving payments from the debtor and distributing those payments to creditors. The trustee also objects to any kind of improper Chapter 13 plan payments or Chapter 13 plans in general.
So it is important to know who your trustee is. It is important to understand the types of things the trustee will look for or require and it’s also very important to have a good relationship with the trustee because they are the ones who recommend a Chapter 13 plan or recommend a discharge in a Chapter 7.