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 Hawaii, as in other states, a bankruptcy trustee plays a crucial role in the bankruptcy process. The trustee is an independent administrator appointed by the bankruptcy court to oversee the case. The trustee's responsibilities include reviewing the debtor's bankruptcy forms, investigating the financial information provided, and ensuring that the bankruptcy filing is legitimate and free of fraud. While trustees are involved in most bankruptcy cases, including those filed under Chapter 7 and Chapter 13, they are not typically appointed in Chapter 11 reorganizations, which are usually handled by the debtor as a 'debtor in possession,' or in Chapter 9 municipality bankruptcies. The trustee also has the authority to sell nonexempt property to pay creditors, challenge creditor claims, and pursue actions against third parties who may have property of the debtor or who owe the debtor money. The role of the trustee is to represent the interests of the creditors and ensure the bankruptcy process is conducted fairly and in accordance with federal bankruptcy laws and applicable Hawaii statutes.