When you file for bankruptcy in Maryland, a trustee takes charge of your case. This person manages the process fairly for you and your creditors. Knowing what the trustee does can help you understand bankruptcy better. It also enables you to know what to expect as you work to fix your money problems. The trustee’s job is important; learning about it can make your bankruptcy journey easier.
Who appoints a bankruptcy trustee?
In Maryland, the United States Trustee Program, a division of the Department of Justice, appoints bankruptcy trustees. They select from a panel of qualified professionals, often attorneys or accountants with significant bankruptcy law experience. These trustees must follow strict ethical guidelines and undergo regular evaluations to maintain their positions. The U.S. Trustee’s Office ensures trustees perform their duties effectively and impartially throughout the bankruptcy process.
What are the main responsibilities of a bankruptcy trustee?
In Chapter 7 cases, trustees focus on liquidating assets to repay creditors. For Chapter 13 bankruptcies, they oversee the debtor’s repayment plan and ensure compliance with court orders. A bankruptcy trustee’s primary duties include:
- Reviewing the debtor’s financial documents
- Identifying and liquidating nonexempt assets
- Distributing funds to creditors
- Conducting the 341 meeting of creditors
- Objecting to improper exemptions or discharge
Maryland law provides the framework for trustees’ actions in handling bankruptcy estates. However, dealing with bankruptcy can be complex, and the trustee’s role is just one piece of the puzzle. An attorney can help you understand your rights, prepare required documents and represent your interests. They can also advise you on exemptions under Maryland law, which may protect certain assets from liquidation. Legal guidance lets you make informed decisions and work towards a fresh financial start.