A bankruptcy trustee is a person or entity who is independent of the bankruptcy court and is appointed to oversee your bankruptcy case. A bankruptcy trustee is appointed in most every case—except in Chapter 11 reorganizations and Chapter 9 municipality cases. The bankruptcy trustee is responsible for reviewing your bankruptcy forms, investigating and verifying your financial information, and making sure your bankruptcy filing is not fraudulent.
In Alaska, as in all states, a bankruptcy trustee plays a crucial role in the bankruptcy process. The trustee is an independent administrator appointed by the bankruptcy court or the U.S. Trustee Program to oversee specific types of bankruptcy cases, primarily Chapter 7 liquidations and Chapter 13 reorganizations for individuals. The trustee's responsibilities include reviewing the debtor's bankruptcy forms and financial information, ensuring the accuracy of the information provided, and identifying any potential fraud. The trustee also manages the sale of the debtor's non-exempt assets in a Chapter 7 case and distributes the proceeds to creditors. In Chapter 13 cases, the trustee oversees the debtor's repayment plan, collecting payments from the debtor and disbursing them to creditors. While trustees are not involved in Chapter 11 reorganizations (which are typically for businesses) and Chapter 9 municipality cases, they serve a vital role in the majority of personal bankruptcy cases to ensure the integrity of the bankruptcy process.