A trustee in bankruptcy is really an administrative entity, usually an individual, who is in charge of administering the entire bankruptcy estate. Trustees are appointed to oversee and manage the debtor's property and accounts. The court appoints a small number of trustees to administer the debtor's bankruptcy estate. Trustees are subject to law and must follow the law. The most common duties of a trustee are to investigate debts owed to the debtor and the property held by the debtor. They must also report changes in ownership of debtors' property to the court.
In most cases, a bankruptcy trustee does not deal with creditors directly. Rather, they receive information from the individual debtor and compile a list of creditors for whom there are accounts or property. They then file a Notice of Intended Trustee Custody with the court stating that they have been appointed as trustee to oversee the debtor's property and account accounts. The court then grants a temporary restraining order known as a TRUSTEE. Check out this Consumer Proposal or get the right bankruptcy trustee services at https://foxmiles.ca/debt-solutions/consumer-proposal/.
There are two types of TRUSTEE orders. One allows the trustee to manage the debtor's accounts and pay creditors; while the other permits the trustee to discharge debts and liens through bankruptcy proceeding. The TRUSTEE enables a creditor to collect a discharged debt from the individual who has filed the bankruptcy case. Once the discharged debt is paid in full, this discharge is permanent and void.
In order to discharge debts and liens through a bankruptcy case, the trustee must file a petition with the court stating that the individual debtor is unable to pay the debts. The trustee must also state that the individual is not under any type of financial disability as defined by the code. These conditions must be met in order to enable the trustee to commence collection of the discharged debts. A TRUSTEE will be issued by the court after approval by the circuit court.
In certain cases, a petition will be submitted by the individual bankruptcy administrator before the case trustee issues a TRUSTEE. If the petition is denied by the circuit court, the petition can be re-filed with the court within a certain period of time. If the petition is approved, the case trustee must then file the TRUSTEE with the appropriate county clerk.
There are a number of grounds on which a TRUSTEE may be granted by the court. A TRUSTEE is most often granted when the creditors do not wish to pursue collection on an unsecured loan or debt that has become uncollectible. If a bankruptcy administrator refuses to accept a TRUSTEE, the court may issue a chapter 7 discharge. Continue reading more on this here: https://www.huffpost.com/entry/top-10-reasons-people-go-_b_6887642.