United States Trustees supervise the administration of the following cases filed under the Federal Bankruptcy Code:
- Liquidation proceedings under - Those assets that are not exempt from creditors are collected and liquidated (reduced to money). The proceeds are distributed to creditors by a private trustee appointed to administer the debtor’s estate under Chapter 7.
- “Wage-earner" reorganization proceedings under Chapter 13- - , is used primarily by individual consumers to reorganize their financial affairs under a repayment plan that must be completed within three to five years.
A “standing trustee" appointed by the United States Trustee typically serves as a trustee of the U.S. Bankruptcy Court where the case was filed.
Specific responsibilities of the United States Trustees include:
- Appointing and supervising private trustees who administer Chapter 7, 12 and 13 bankruptcy estates (and serving as trustees in such cases where private trustees are unable or unwilling to serve).
- Taking legal action to enforce the requirements of the Bankruptcy Code and to prevent fraud and abuse.
- Referring matters for investigation and criminal prosecution when appropriate.
- Ensuring that - estates are administered promptly and efficiently, and that professional fees are reasonable.
- Appointing and convening creditors’ committees in Chapter 11 business reorganization cases.
- Reviewing disclosure statements and applications for the retention of professionals.
- Advocating matters relating to the Bankruptcy Code and rules of procedure in court.
