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 Michigan, as in other states, a bankruptcy trustee is an independent party appointed to manage the bankruptcy process for most types of bankruptcy cases, excluding Chapter 11 reorganizations and Chapter 9 municipality cases. The trustee's role is to review the debtor's bankruptcy forms, investigate the financial information provided, and ensure that the bankruptcy filing is legitimate and free of fraud. The trustee also has the authority to sell non-exempt property to pay creditors in a Chapter 7 bankruptcy and to oversee the debtor's repayment plan in Chapter 13 bankruptcy. Trustees are appointed by the United States Trustee Program, which is a component of the Department of Justice, and their actions are governed by federal bankruptcy laws as well as local rules specific to the bankruptcy courts within Michigan.