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Bankruptcy

Chapter 7 bankruptcy—changing trustee

The United States Bankruptcy Trustee appoints an interim trustee upon the filing of a chapter 7 case. Unless the creditors exercise their right to elect a different permanent trustee at the Section 341(a) meeting of creditors, the interim trustee automatically becomes the permanent trustee. Then the permanent trustee serves as trustee until the case is closed.

You generally can not request a different trustee—except in the rare situation in which you have a previous relationship with the trustee that the bankruptcy court would recognize as a disqualifying conflict of interest.

In Arizona, as in other states, the U.S. Bankruptcy Trustee appoints an interim trustee when a Chapter 7 bankruptcy case is filed. This interim trustee takes on the role of managing the bankruptcy estate, which includes liquidating non-exempt assets to pay creditors. During the Section 341(a) meeting of creditors, the creditors have the opportunity to elect a different trustee, but if they do not, the interim trustee becomes the permanent trustee for the duration of the bankruptcy process. It is not common for debtors to request a change in trustee, and such requests are typically only considered if there is a conflict of interest, such as a prior relationship between the debtor and the trustee, that could affect the impartial administration of the bankruptcy estate. The bankruptcy court has the authority to recognize such conflicts and make trustee changes if necessary.

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Bankruptcy

Chapter 7 bankruptcy—changing trustee

Individual & Family Legal Plan

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Arizona State Code

Arizona State Code

Bankruptcy

Chapter 7 bankruptcy—changing trustee

Articles