Appointment of Bankruptcy Trustees
In Arizona, a trustee is designated to your case by the U.S., rather than the bankruptcy court itself. The Department of Justice’s U.S. Trustee’s Office is in charge of regulating bankruptcy cases. Trustees are selected from a group of eligible individuals who will perform the duties and responsibilities that come with the role. They exhibit competence and integrity in dealing with financial concerns, although they don’t have to be accountants or lawyers.
Depending on the type of bankruptcy, the procedure of appointing trustees differs:
- Chapter 7 Bankruptcy: A panel trustee is randomly assigned to the case from a rotating list of qualified individuals.
- Chapter 13 Bankruptcy: In this bankruptcy option, a standing trustee is often assigned to all cases within a specific jurisdiction. The standing trustee is mainly responsible for managing the debtor’s repayment plan and allocating payments to creditors.
- Chapter 11 Bankruptcy: Normally, the debtor may continue to manage the business as a “debtor in possession” and handles many of the duties a trustee would perform. However, in cases where incompetence or fraud are suspected, a trustee may be appointed.
Qualifications of a Bankruptcy Trustee
The requirements become a bankruptcy trustee are uniform across the country, including in Arizona.
1. Relevant Experience
2. Good Character
3. Financial Responsibility
4. No Conflicts of Interest
5. Bonding
6. Residency or Office in the Area
The qualifications for trustees may vary depending on the type of bankruptcy case. Bankruptcy trustees handle Chapter 7 and Chapter 13 cases. Chapter 11 cases requires a court order to appoint a trustee.
The U.S. Trustee’s office fills any openings for trustees. Keep an eye out for the public announcement detailing the application procedure and the qualifications.
Becoming a Bankruptcy Trustee in Arizona
The U.S. Trustee Program maintains a network of trustees that monitor Chapter 7 and Chapter 13 bankruptcy cases. The steps to become a bankruptcy trustee are as follows:
1. Review the Requirements
2. Gain Relevant Experience
3. Apply to Become a Trustee
4. Undergo a Background Check
5. Complete Trustee Training
6. Serve as a Trustee
Being a trustee entails a lot of responsibility and calls for a thorough knowledge of the law and financial matters. The ability to handle delicate situations and information is a valued skill. You’ll be managing the financial restructuring or liquidation of companies and people. This requires a high level of trust.
