Bankruptcy Roles: Debtor, Trustee, and Creditor
Interviewer: Who are the players involved when you file bankruptcy? What are the other parties involved in the bankruptcy? What’s the skeleton of what happens in a case?
Adam: We have a debtor, which is the person I would be representing in the case. We have a creditor, which is the person or entity that loaned money to the debtor. Then, we would have a bankruptcy trustee. Typically, most creditors don’t show up for the 341 hearing.
The information from the hearing goes on the record. The trustee asks a few questions. The trustee verifies that the person in front of them is the person actually filing. He or she makes sure that the debtor has disclosed all of the assets and debt under oath and that is usually the end of the hearing in front of the trustee.
Interviewer: There is a bankruptcy trustee. Are they an attorney? Are they a judge? What do they do and what is their role in your bankruptcy case?
Adam: The trustee is an attorney. The trustee’s role is to conduct a hearing in order to protect the creditor. During the hearing, they make sure the debtor has disclosed all of his or her debts.
Interviewer: All right so the job of the trustee. He or she is the lawyer on behalf of the bankruptcy court. His or her job is to make sure that you are not hiding any assets. I imagine his or her job too is to try and get as much money as he possible to pay any creditors, right?
Adam: Yes, that is correct.
By Adam Hunt