Bankruptcy Trustee

The federal government has exclusive jurisdiction over cases involving bankruptcy. Therefore, bankruptcy petitions are filed in federal courts, not state courts. Federal judges are appointed to these courts. In Arizona, Chapter 7 and Chapter 13 bankruptcy cases are handled by a bankruptcy trustee that has been appointed for that job.

Bankruptcy trustees are federally appointed professionals charged with overseeing all aspects of bankruptcy petitions. These professionals are usually attorneys familiar with financial matters or accountants. Bankruptcy trustees are responsible to administer assets for the creditors and they serve as watchdogs in bankruptcy cases to ensure that no fraud is committed. They are a separate entity supervised by the US Department of Justice and do not offer legal advice.

A bankruptcy trustee is always appointed in Chapter 7 or Chapter 13 bankruptcy cases in Arizona. Chapter 11 bankruptcy is unique, and there is not always a trustee appointed. Usually, the Chapter 11 debtor has the powers and responsibilities of a trustee.

Bankruptcy trustees preside over court-ordered meetings and ensure that all proceedings are consistent with federal bankruptcy laws. As disinterested parties, they review the facts of each petition and act in the best interests of both the debtor and the creditors. Bankruptcy trustees collect and manage sale of assets, collect and distribute funds, and often act as a negotiator between the debtor and the creditor. A bankruptcy trustee’s work and compensation are reviewed by a federal bankruptcy judge.

It is not advisable to attempt to speak with a bankruptcy trustee directly. Consult with an experienced bankruptcy attorney to help facilitate any needed communication. Your bankruptcy attorney’s office will work with the bankruptcy trustee’s office to supply all of the needed paperwork and information the trustee requests.

In Arizona bankruptcy, the bankruptcy trustee is will handle all necessary facets of your bankruptcy case. An experienced bankruptcy attorney is accustomed to working with the appointed bankruptcy trustees in Arizona, and will ensure that your case is represented for the best possible outcome.