A bankruptcy trustee is a lawyer or other financial expert who is appointed to manage the distribution of properties and other assets during the bankruptcy proceedings. The trustee is responsible for protecting those assets which should be distributed to all the creditors, after the bankruptcy has been filed. Bankruptcy can occur due to a host of reasons such as tax evasion, non payment of debts, default in repayment of loans and more. A bankruptcy trustee will ensure that the assets are distributed according to the wishes of the trustee and the wishes of the creditors.
A bankruptcy trustee's duties include advising the court on the course of action to be taken, advise the debtor on the possible repayment format and how much money he/she can realistically return. The bankruptcy trustee must also regularly evaluate the situation and the condition of the debtor. The duties of a bankruptcy trustee are generally not too complex and do not require any special training. Nonetheless, in order to serve effectively as bankruptcy trustee, it is very important to:
The duty of the bankruptcy trustee is to defend the interests of the debtor in the bankruptcy case. The trustee must take all steps and measures necessary to prevent the debtor from retaining any legal or other actions in connection with the bankruptcy case. The trustee must, at every stage, appear in the court and give relevant advice on the subject matter. The bankruptcy trustee must act in an orderly manner at all times and must follow the court's rules and procedures.
The trustee must preserve the confidentiality of all correspondence exchanged with the creditors and must not disclose information received from the creditors. The bankruptcy trustee must not disclose information received from the court or the creditors or their attorneys. The bankruptcy trustee must not give anyone information about the bankruptcy or debtor unless the information is necessary for the court process. The bankruptcy trustee may consult with counsel and make decisions on his/her own. However, they must follow the court's orders and procedures.
The bankruptcy trustee must not attend bankruptcy proceedings except with the express permission of the court. He/She must file all documents necessary with the court and must remain in regular contact with the parties involved until all bankruptcy proceedings are complete. The bankruptcy trustee has absolute power to transact business with any person having any prior interest in the bankruptcy proceedings, see page. The bankruptcy trustee may allow a person who has been designated as a beneficiary to interact with the trustee. However, the trustee must disclose to the person that the trustee has become a trustee and that the person has an interest in the bankruptcy proceedings, learn further.
The bankruptcy trustee must not hire or engage in any transaction or activity that could result in a conflict of interest in the bankruptcy proceedings. The bankruptcy trustee must not take part in any bankruptcy proceeding if he/she has any direct or indirect interest in the bankruptcy proceedings. Finally, the bankruptcy trustee must not use his/her position for the benefit of any person. The trustee may be questioned by the House of Congress or the Senate and the courts on any act done during the bankruptcy proceeding. All such questions and actions by the bankruptcy trustee must be reported to the Office of the Clerk at regular intervals.
Here's where you can find more info: https://en.wikipedia.org/wiki/Debt_settlement