Bankruptcy Trustee

Definition - What does Bankruptcy Trustee mean?

The bankruptcy Trustee is the person that is assigned by the court to act on behalf of the debtor in making arrangements with creditors and coming to agreements for repayment according to what can actually be afforded. The bankruptcy Trustee has to work in the best interest of the debtor and can only make arrangements that can be maintained throughout the term of the bankruptcy.

Justipedia explains Bankruptcy Trustee

It is up to the bankruptcy Trustee to explain to the debtor what is happening on their behalf along the way because the Trustee will be dealing with the court and the creditors on behalf of the debtor. If the debtor is represented by an attorney, the Trustee will stay into contact with the attorney as well. The Trustee must be seen to be on the side of the debtor. There cannot be any conflicts of interest between the Trustee, creditors, and debtor.

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