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Nobody Understands Me: How the Hybrid Role of a Chapter 13 Trustee Affects Debtors and Creditors

Chapter 13 trustees are unique. Unlike chapter 7 trustees, they do not take possession of a debtor’s assets. Yet the Bankruptcy Code imposes some responsibilities on them with respect to property of the estate. It also imposes responsibilities on them to assist a debtor. This session focuses on understanding the hybrid nature of the trustee’s role in chapter 13 cases, and how it impacts issues and strategies for debtors and creditors in chapter 13. Can a chapter 13 trustee sell property under § 363? Can a chapter 13 trustee recover preferences under § 547 or fraudulent conveyances under § 548? What are the trustee’s duties regarding the continuing prosecution of litigation brought by a debtor pre-bankruptcy to recover from a third party? What are the chapter 13 trustee’s duties regarding filing proofs of claim on behalf of creditors? What must a chapter 13 trustee do to assist a debtor?

Hon. Steven W. Rhodes Consumer Bankruptcy Conference
2018
Materials Year: 
Bankruptcy Rules: 
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