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Bankruptcy Trustees and Administrators – Who Are These People?

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North Carolina and Alabama’s Administrators

When a debtor files for bankruptcy, an action is filed in bankruptcy court. What happens with it after filing? Who handles the case? In two states – North Carolina and Alabama – an Administrator is assigned to handle the case. The bankruptcy administrator program, which was established in the mid-80s by Congress, oversee the administration of bankruptcy cases in these two states. The administrative offices in these states maintain private bankruptcy trustees and monitor the case during the course of its time in the court system. In addition, they are responsible for the approval of the debt counseling component and required in a bankruptcy case and related matters as well as for issuing schedules needed for several forms required in a Chapter 13 bankruptcy.

Indiana’s – And Everyone Else’s – Trustees

Every other state in the country uses Trustees instead of Administrators. The United States Trustee Program is part of the United States Department of Justice, and when a bankruptcy case is filed in states other than North Carolina and Alabama, an impartial trustee is assigned to perform generally the same types of tasks that an Administrator handles in North Carolina and Alabama. This program was started earlier than the bankruptcy administrator program, in the late 70s, and its primary task is to watch over the bankruptcy system.

Enough About Who They Are – Exactly What Do These Trustees Do?

Trustees handle all of the individual parts of the court process associated with a bankruptcy filed in most of the country. Some general duties are to handle liquidation of assets and distribution of funds to creditors in Chapter 7 cases; in Chapter 13 cases, and Chapter 11 cases in which a trustee is appointed, they supervise the reorganization plan created by the debtor. Some other more specific duties performed by trustees include:

  • Enforcing requirements of the Bankruptcy Code to prevent bankruptcy fraud and abuse of the system
  • Making sure bankruptcy estates are administered properly
  • Making sure professional fees are reasonable
  • Conducting Chapter 11 creditor committees

When Facing Mounting Debt, Contact Us To Discuss Whether Bankruptcy Is The Right Option For You

Debt can go from manageable to out of control quickly and, before you realize it, a stressful situation can begin to feel overwhelming. If you are in this situation, take comfort in knowing that a lot of the time it happens for reasons completely out of your control. The knowledgeable attorneys at Whitten & Whitten will go over your case with you and help you know what you can expect when you file and as the case progresses through the system. The experienced professionals at Whitten & Whitten have years of experience with all types of bankruptcy matters and are the ones you can trust to handle your case competently and professionally. Contact us today online or by calling 219.756.0555 to get started on your way to a more secure financial future.

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