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 Vermont, as in other states, a bankruptcy trustee is an independent party appointed to manage a bankruptcy case, with the exception of Chapter 11 reorganizations and Chapter 9 municipality cases. The trustee's role includes reviewing the debtor's bankruptcy forms, investigating the financial information provided, and ensuring that the bankruptcy filing is legitimate and free of fraud. The trustee also has the responsibility to liquidate any non-exempt assets in a Chapter 7 bankruptcy and distribute the proceeds to creditors, and in Chapter 13, to oversee the debtor's repayment plan. The appointment of a trustee is a standard part of the bankruptcy process, and their duties are governed by federal bankruptcy laws as the Bankruptcy Code is a federal statute. Vermont's local bankruptcy court procedures and any specific state laws regarding asset exemptions will also guide the trustee's actions within the state.