What is a trustee

A trustee is a person or entity that holds legal title to property for the benefit of another person or entity. In the context of debtor and creditor law in North Carolina, trustees are appointed by the court to manage debtors’ property. The trustee’s job is to collect debts owed to creditors, disburse funds to creditors, and manage the debtor’s assets in the best possible manner so as to maximize the amount of money available to pay creditors. The trustee must also report regularly to the court on the debtor’s financial situation and the progress made toward repaying creditors. Trustees also have the power to take legal action against creditors if they are unhappy with the debt repayment terms being offered by the creditors. They can also challenge unfair or fraudulent debts and argue for a lower repayment rate. For example, if a debtor has multiple creditors but only has enough money to pay one or two of them, the trustee can argue for a repayment schedule that divides the money among all of the creditors in a fair manner. Lastly, trustees also advise debtors on how best to manage their financial affairs. They provide assistance with budgeting, repayment strategies, and other financial matters to help the debtor get back on track financially.

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