A trustee in bankruptcy is basically an entity, usually an individual, responsible for administering a bankruptcy estate after a bankruptcy case has been filed. Bankruptcy can occur because of mismanagement of a business or of an individual. In most cases, the trustee cannot keep assets or property for the debtor, as part of the original agreement. The court appoints a trustee to administer the property and pay off debts.
In many cases where the individual debtor files for bankruptcy protection, a trustee cannot be appointed prior to filing the petition. When an individual who owns property does not own the deed of the property, a trustee cannot be appointed by the court. A trustee cannot continue to manage the property or pay off creditors until the bankruptcy case has been resolved. Once the case has been discharged, the creditors can resume collecting their debts from the bankrupt individual.
A trustee can be an individual; business or unincorporated organization. One can appoint just one trustee, or an entire trust company, or a group of trustees. Trustees in bankruptcy cannot spend the assets of the bankrupt individual, unless the individual declares bankruptcy. This means that during the bankruptcy case, the trustee cannot give to the individual any gifts or money. Check out this Consumer Proposal or get the right bankruptcy trustee services at https://foxmiles.ca/debt-solutions/consumer-proposal/.
In addition to supervising the liquidation of the property and collecting moneys, the case trustee also is responsible for keeping the property in good condition and making sure that it meets the requirements of the bankruptcy administrator. He or she may require a report of the property's condition every six months. If the condition of the property changes, the trustee must make the appropriate changes to the timely notice provided to the creditors. The trustee does not necessarily become the creditor of the bankrupt.
Once the discharge has been completed, the trustee is discharged from his or her duties and responsibilities. The discharged trustee is responsible for reporting any new property developments, including additions to real property and any improvements, to the court. The trustee may also be required to file reports with the circuit court regarding the progress of discharge.
The trustee is discharged from his or her duties only after the discharge has been approved by the court. The discharge protects the creditors from civil and criminal liability. However, the discharge does not affect the rights of the individual or his or her heirs or assigns. A discharged trustee is not required to disclose his or her connection with the bankruptcy case.
Bankruptcy trustee | chapter 7 case | discharge | seven case | bankruptcy case} The discharge protects the interest of the individual and his or her heirs or assigns. The discharge does not alter or change the debtor's credit rating in any way. A discharge protects the creditors from their right to collect on the debts. The discharge protects the individual's or his or her heirs' right to recover monies from the trustee, unless the trustee sells the nonexempt assets of the trust. A discharge will prevent the creditors from collecting any interest or fees against the discharged person or his or her dependents. Continue reading more on this here: https://www.huffpost.com/entry/top-10-reasons-people-go-_b_6887642.