Part associated with the Case Trustee
Each time a chapter 7 petition is filed, the U.S. trustee ( or the bankruptcy court in Alabama and new york) appoints a impartial instance trustee to manage the situation and liquidate the debtor’s nonexempt assets. 11 U.S.C. В§В§ 701, 704. The trustee will normally file a “no asset” report with the court, and there will be no distribution to unsecured creditors if all the debtor’s assets are exempt or subject to valid liens. Many chapter 7 situations involving debtors that are individual no asset situations.
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