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What Does a Bankruptcy Trustee Do?

What Does a Bankruptcy Trustee Do?

A bankruptcy trustee is an individual who has been appointed by a bankruptcy court to oversee the financial reorganization of an individual who has filed for Chapter 13, Title 11 bankruptcy under the Uniform Bankruptcy Code adopted in the United States of America. A Chapter 13 trustee will develop the plan that will allow the person who has filed for Chapter 13 reorganization to repay their debts.
Under this form of bankruptcy, a bankruptcy trustee will supervise the payment plan of an individual until the debt is repaid or for three years, whichever happens first. However, if it is determined that the individual who has filed a bankruptcy claim has an above average level of income, then the Chapter 13 trustee may have to supervise the repayment plan for five years.
A bankruptcy trustee has a specific focus that a public trustee may employ. A Chapter 13 trustee can be alternatively known as a United States Trustee or a Bankruptcy Administrator. The branch of government of the United States of America which employs each bankruptcy trustee, whether they are a Chapter 13 trustee or any other kind, is the Administrative Office of the United States Courts. North Carolina and Alabama are the only states that employ bankruptcy administrators instead of a bankruptcy trustee.

Trustee Sale Explained

Trustee Sale Explained

A trustee sale is a type of foreclosure sale, conducted by a designated individual (the trustee) as determined by stipulations laid out in a Deed of Trust. Upon exercising a Deed of Trust, a specific trustee must be designated. If there is a default on the property, then the trustee appointed by the Deed of Trust is authorized to foreclose on the mortgage and is allowed to sell the property under a trustee sale.
If the trustee sale takes place, the trustee is then required to distribute the proceeds from the sale in a manner that adheres to the priorities that are listed in the Deed of Trust.
A trustee sale can govern the sale of a wide range of property, although a trustee sale will always apply to the sale of real estate. The trustee sale can be handled by a sheriff or a court-appointed lawyer. A trustee sale can develop if mortgage payments are not made on time or from a failure to pay property taxes.
A local trustee sale will take place at a date and time that is announced through the classified section of a local newspaper. A trustee sale takes the form of an auction with the property being sold as is, with no implied or implicit warranties or guarantees.
In order to be eligible to enter a bid during a trustee sale, the bidder must demonstrate that they have on hand enough of a sufficient value of cash or cashier’s checks.

A Quick Overview of a Trustee

A Quick Overview of a Trustee

A trustee can sit at the head of a trust, although a trustee can also administer an estate. The principles that govern the work of a trustee has also been used to refer to the heads of corporations.
The position of public trustee developed in New Zealand before spreading throughout the world, especially in British Commonwealths. In probate law, a public trustee may be called upon to serve as an executor for an estate in which the will has not named an executor or the named executor cannot serve or refuses to assume the duty. However, an individual may specify that their executor will be the public trustee.
A trustee sale is a case of foreclosure under which a trustee sells a foreclosed piece of real estate in order to satisfy the specific requirements of a Deed of Trust.

The Legal Role of a Trustee

The Legal Role of a Trustee

A trustee is an individual who has either assumed or been charged with the responsibility to hold property on behalf of a beneficiary. Some of the reasons that trustees are appointed is because the beneficiary is unable to manage their own affairs, either because they have not yet reached the age of majority or has demonstrated themselves to lack the mental capacity to manage their own affairs.
Some of the typical examples of a trust that will require the services of a trustee include will trusts that are established for the testator’s children or heirs, a pension trust which confers benefits to employees or their families, or a charitable trust. A trustee in any of these cases can be an individual or a company. A trustee is not prohibited from being a prospective beneficiary.
Trustees assure certain duties to the beneficiaries of a trust. Some of a trustee’s duties are fiduciary. Included in the duties of a trustee is the responsibility to carry out the trust instrument’s expressed terms, to defend the trust, to invest the assets of the trust in a prudent manner, to remain impartial in disputes among beneficiaries, to account for and keep the trust’s beneficiaries informed of the trustee’s actions, to remain loyal to the best interests of the trust, to not delegate responsibility for the management of the trust, to not derive profits from the trust, to avoid conflicts of interest, and to always bear in mind the best interests of the beneficiaries.
The specific restrictions of the actions of trustees can be modified according to the terms of the instrument that establish the trust in the first place.