What is a “bankruptcy trustee”?

A bankruptcy trustee is a person appointed to manage a bankrupt person’s finances and administer the bankruptcy estate. Under Washington’s creditors’ rights law, the bankruptcy trustee must ensure that all creditors receive a fair share of the debtor’s assets in accordance with the bankruptcy code. The trustee is responsible for collecting the debtor’s assets, selling off any nonexistent property, and distributing the proceeds among creditors. The trustee is also expected to investigate fraud and other irregularities, if any, and report them to the court. In addition, the trustee may advise debtors on financial matters and provide information on how to manage their finances after the bankruptcy process is complete. The trustee is an independent party and an agent of the court and must act strictly in the best interest of the creditors. The trustee is also responsible for filing the bankruptcy papers, attending all court hearings, and making sure all creditors receive the proper notification of the bankruptcy. The ultimate goal of a bankruptcy trustee is to maximize the return on assets through the liquidation of assets and to ensure all creditors are paid.

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What is a “bankruptcy trustee”?

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