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 Colorado, as in other states, a bankruptcy trustee is an independent party appointed to manage the bankruptcy process for individuals or businesses filing for bankruptcy under Chapter 7 or Chapter 13. The role of the trustee is to review the debtor's bankruptcy forms and financial information, oversee the sale of the debtor's non-exempt assets (if any), and distribute the proceeds to creditors in a Chapter 7 case. In a Chapter 13 case, the trustee evaluates the debtor's repayment plan and collects payments from the debtor to distribute to creditors. Trustees are appointed by the U.S. Trustee Program, which is a component of the Department of Justice. They are not appointed in Chapter 11 reorganization cases, which are typically for businesses, or Chapter 9 municipality cases. The trustee's primary goal is to ensure the bankruptcy process is conducted fairly and in accordance with federal bankruptcy laws, and to prevent fraudulent bankruptcy filings.