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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 New York, as in other states, the U.S. Bankruptcy Trustee appoints an interim trustee when a Chapter 7 bankruptcy case is filed. This interim trustee may become the permanent trustee if the creditors do not choose to elect a different one during the Section 341(a) meeting of creditors. The trustee's role is to manage the bankruptcy estate, liquidate non-exempt assets, and distribute the proceeds to creditors. It is not common for debtors to request a change in trustee, and such requests are typically only considered if there is a demonstrable conflict of interest, such as a prior relationship between the debtor and the trustee that could affect the impartial administration of the bankruptcy case. The bankruptcy court has the authority to determine whether a conflict of interest warrants the appointment of a different trustee.

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Bankruptcy

Chapter 7 bankruptcy—changing trustee

Individual & Family Legal Plan

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Bankruptcy

Chapter 7 bankruptcy—changing trustee