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What is the difference between the Trustee and the US Trustee?

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    What is the difference between the Trustee and the US Trustee?

    I am confused. Do you meet with both at the 341 meeting? Does one have more power?

    #2
    Not necessarily. In a Chapter 13, the UST rarely shows up. That is because the UST is primarily focused on the integrity of the bankruptcy program. This usually means, for Chapter 7s, making sure people that can afford a Chapter 13, are in a Chapter 13. The UST is also responsible for dealing with fraud and referring bankruptcy crimes to the Attorney General. Think of the UST as the "police" of the bankruptcy system.

    The Chapter 7 Panel and Chapter 13 Standing Trustees, work for and at the direction of the United States Trustee. There is an executive Office of the United States Trustee which is the person responsible for the entire bankruptcy program. Think of the OUST as the Attorney General. The OUST then appoints regional USTs (think of them as the equivalent of a U.S. Attorney). The Panel and Standing Trustees implement the bankruptcy program and manage (administer) cases on behalf of the OUST.

    So, the OUST and UST have more power than the panel and standing trustees, since the UST/OUST provide the federal government oversight.

    For a Chapter 7, the UST does not usually appear, but they do when the case warrants their involvement. Things that will certainly peak the UST's curiosity, with a case, include, but are not limited to, over the median filers in a Chapter 7, multiple filings (serial filers), very high income earners (I don't have a number, but think twice the median income) in Chapter 7s, random audit, appearance of fraud, and other similar oddities.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thank you for clearing that up for me. I will be filing CH 7 (1 1/2 year from now) since there is no way out.

      I just posted a question under AP. But maybe it should be under trustee...$25,000 dental loan I took out in December before everything got out of control. Still current on everything, but stopping paying CCs this month.

      If I default on this loan this year, will that likely trigger US Trustee? Or make that loan non-dischargeable?

      Comment


        #4
        Originally posted by Kauai1018 View Post
        If I default on this loan this year, will that likely trigger US Trustee? Or make that loan non-dischargeable?
        The UST is not concerned with individual debts. The UST is concerned with the program integrity. The UST usually only does two things; a.) file a motion to dismiss (due to ineligibility), or b.) file complaints with the US Attorney to prosecute bankruptcy crimes.

        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog


        I am not an attorney. Any advice provided is not legal advice.

        Comment

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