In Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, one of the most important people is the trustee. A Chapter 7 trustee in North Carolina is responsible for collecting and liquidating the property of the bankruptcy estate and distributing the proceeds to creditors. The trustee’s obligations are set forth in the U.S. Bankruptcy Code at Section 704. Specifically, the statute sets forth nine duties of the trustee. The first is to collect and convert the property of the estate to money and close the estate.
The duties of the trustee
The trustee is also responsible for investigating the petitioner’s financial affairs and for all property received by the estate; he or she must ensure that the petitioner performs regarding surrender or retention of secured property. The trustee should examine any proofs of claim that are entered and furnish relevant information to parties in interest. In cases where the petitioner’s business receives authorization to continue operating, the trustee is responsible for filing summaries and reports with the court. These filings should include a statement of disbursements and receipts.
The last of the duties of the trustee is to file a final administration account with the U.S. Trustee and the bankruptcy court. The trustee is empowered to do what is necessary to effect his or her duties in the case. This might include hiring attorneys, appraisers, accountants or other professionals. The trustee may also sell, use or lease the property of the estate.
People in North Carolina who are having difficulty making required bill payments might consider meeting with a lawyer. A lawyer who practices bankruptcy law may be able to help by negotiating with creditors or working with the client to pursue debt reduction or elimination. In Chapter 7 Bankruptcy cases in North Carolina, petitioners are allowed to exempt certain assets from the proceedings. In this way people may be able to discharge debts without losing necessary assets.
