Many people who need to file chapter 7 bankruptcy or chapter 13 bankruptcy do not understand the role of a trustee in chapter 7 bankruptcy or chapter 13 bankruptcy cases.  In all cases of bankruptcy, no matter if it is chapter 7 bankruptcy or chapter 13 bankruptcy, an impartial trustee is appointed by the United State Trustee, an officer of the Department of Justice.  It is essential to understand that the trustee’s primary role is to act as the creditor’s representative, and his role and degree of involvement varies depending on whether the case concerns a chapter 7 bankruptcy or a chapter 13 bankruptcy.It is also the trustee’s responsibility to endure the debtor’s repayment plan runs as smoothly as possible.  How trustees protect creditors’ interests is defined by the question whether the creditor is filing chapter 7 bankruptcy or chapter 13 bankruptcy.  For instance, in a chapter 7 bankruptcy, the trustee can liquidate non-exempt assets in the creditor’s estate and to repay the creditors, but he can also object to a debtor’s claim to exemptions and even to his discharge.
 
In a chapter 13 bankruptcy, the trustee is present at all court hearings that pertain to property valuation and must ensure that the repayment of creditors runs smoothly.  Looking at the role of a trustee in a chapter 7 bankruptcy, it’s evident that his responsibilities are limited.  In chapter 7 bankruptcy cases where the debtor possesses assets, the trustee is responsible for the liquidation thereof and the subsequent repayment of the creditors.  Besides this, the trustee will review all the paperwork to ensure it is all correct and participate in creditor meetings.  If any evidence of fraud, perjury or ineligibility is discovered the trustee has the power to deny the debtor a discharge.In a chapter 13 bankruptcy, the trustee’s role is much more comprehensive.  Because no liquidation is involved in a chapter 13 bankruptcy, it’s the trustee’s role to manage the debtor’s financial affairs to effect the repayment of some, or all, of the credit.  He must be present at all court hearings that concern property valuation, ensure that all payments made by the debtor are received, and make sure the money is paid to the respective creditors.  To understand exactly what the trustee’s role will be in your chapter 7 bankruptcy or chapter 13 bankruptcy, consult with your chapter 7 bankruptcy attorney or chapter 13 bankruptcy law.