A Bankruptcy trustee is a person who is appointed by the courts (Department of Justice) to oversee the bankruptcy case. Regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy, you'll have a trustee involved in the case.

In a Chapter 7 Bankruptcy the trustee determines if there are non-exempt assets to liquidate, liquidates those non-exempt assets. The trustee then manages the funds from the sale of those assets, paying expenses and distributing the balance to the creditors.

In a Chapter 13 Bankruptcy the trustee serves the same review function as a Chapter 7 trustee, and is additionally responsible for receiving the debtor’s monthly payments and distributing those funds proportionally to the creditors.

The Bankruptcy Trustee will act on behalf of the debtor to guarantee that both the creditors’ and the debtor’s interests are maintained in accordance with the bankruptcy laws, and often be required to act as a negotiator between the two parties.