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 Wisconsin, as in other states, a bankruptcy trustee is an independent party appointed to oversee bankruptcy cases, with the exception of Chapter 11 reorganizations and Chapter 9 municipality cases. The role of the trustee is to manage the bankruptcy process, which 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 authority to sell nonexempt property to pay creditors in a Chapter 7 bankruptcy and can also make recommendations regarding the debtor's repayment plan in Chapter 13 bankruptcy. The appointment of a trustee is a standard part of the bankruptcy process, and their duties are defined by federal bankruptcy law, as the bankruptcy process is governed primarily by federal law rather than state law. However, Wisconsin state law will influence certain aspects of the bankruptcy case, such as exemptions and the handling of specific types of property.