Chapter 9 - § 9.3 • THE TRUSTEES AND THEIR ROLES IN 7, 12, AND 13

• Jurisdiction: Colorado

§ 9.3 • THE TRUSTEES AND THEIR ROLES IN CHAPTERS 7, 12, AND 13

§ 9.3.1—United States Trustee

The United States Trustee is responsible for overseeing all bankruptcy cases and, under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which was adopted in 2005, the United States Trustee is required to police consumer cases to protect against fraud and abuse of the process.

§ 9.3.2—Case Trustees

In addition to the United States Trustee, a case trustee is automatically appointed in cases arising under chapters 7, 12, and 13. Upon a motion of a party in interest, under certain circumstances — typically fraud or gross mismanagement by the debtor's management — a trustee may be appointed in a chapter 11 case.

Chapter 7 Trustees

A chapter 7 trustee's role is to gather the debtor's assets, liquidate those assets, and distribute the proceeds pursuant to the distribution scheme set forth in 11 U.S.C. § 507. The chapter 7 trustee takes possession of the property of the estate and is responsible for its administration. In performing his or her duties, a chapter 7 trustee may employ professionals and pursue the avoidance actions set forth in 11 U.S.C. §§ 544, 545...