Define: Bankruptcy Trustee

A bankruptcy trustee is a court-appointed official responsible for administering bankruptcy cases and overseeing the distribution of assets to creditors. In bankruptcy proceedings, the trustee acts as a fiduciary for both the debtor and the creditors, ensuring that the bankruptcy process is conducted fairly and according to the law. The trustee’s duties may include gathering and liquidating the debtor’s assets, investigating the debtor’s financial affairs, evaluating claims from creditors, and distributing funds to creditors in accordance with the priority established by bankruptcy law. The trustee plays a crucial role in facilitating the orderly resolution of bankruptcy cases and maximising the recovery for creditors while providing debtors with an opportunity for a fresh start.

Individual appointed by the court system to oversee matters regarding a bankruptcy filing. A bankruptcy trustee may be in charge of seizing assets, selling property, and distributing funds to creditors.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.