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Vermont Bankruptcy Services

Law Office James Palmisano
417 Barre Street
Montpelier, Vermont 05602
Phone: (800) 585-3169
Phone: (802) 229-4001
Fax: (802) 229-2733

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.:Bankruptcy Trustees:.

In every bankruptcy case an impartial trustee is appointed by the court to review and administer the case.  The primary role of the trustee is to act as a representative of the creditors.  The degree of trustee involvement depends on the the type of bankruptcy case filed.  In Vermont, the trustee conducts the creditors' meetings (the 341 meeting) which every person filing bankruptcy is required to attend.

Chapter 7 Trustee
In a Chapter 7 case the trustee will examine your list of assets (if you have any) to determine what assets are exempt from the bankruptcy proceedings.  If all of your assets are exempt, your case is referred to as a no-asset case.  If you have nonexempt assets, your case is referred to as an asset case. In an asset case the trustee will liquidate (sell) your nonexempt assets and distribute the proceeds to your creditors.  The trustee receives a flat fee for handling no-asset cases.  In an asset case the trustee receives that fee plus a commission from the assets that he liquidates to pay your creditors.

Chapter 13 Trustee
The bankruptcy trustee in a Chapter 13 case has a bigger role than in a Chapter 7 case.  In a Chapter 13 case, you make payments to the trustee each month who then distributes the funds among your creditors.  Thus, a Chapter 13 Trustee will continue to be involved for full term of your case, usually three to five years.

United States Trustee
Finally, there is the United States Trustee, of whom you'll likely never have dealings.  The United States Trustee appoints and monitors Chapter 7 and Chapter 13 Trustees.  In addition, the US Trustee recommends to the United States Attorneys and Federal Bureau of Investigation whether legal action should be taken against those suspected of bankruptcy fraud and abuse.  In short, the United States Trustee is the "watchdog over the bankruptcy process".

 

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