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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 South Dakota, as in other states, when a Chapter 7 bankruptcy case is filed, the United States Bankruptcy Trustee appoints an interim trustee to manage the case. This interim trustee typically becomes the permanent trustee unless the creditors decide to elect a different trustee during the Section 341(a) meeting of creditors. The trustee's role is to liquidate any non-exempt assets and distribute the proceeds to creditors. It is not common for debtors to have the ability to request a change of trustee. However, if there is a conflict of interest, such as a prior relationship between the debtor and the trustee that could affect the impartiality of the trustee, the bankruptcy court may consider appointing a different trustee. This would be considered an exceptional circumstance and would require the court's approval.

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Bankruptcy

Chapter 7 bankruptcy—changing trustee

Individual & Family Legal Plan

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South-Dakota State Code

South-Dakota State Code

Bankruptcy

Chapter 7 bankruptcy—changing trustee

Articles