trustee: The representative of the
bankruptcy estate who exercises statutory powers, principally for
the benefit of the unsecured creditors, under the general
supervision of the court and the direct supervision of the U.S.
trustee or bankruptcy administrator. The trustee is a private
individual or corporation appointed in all chapter 7, chapter 12,
and chapter 13 cases and some chapter 11 cases. The trustee’s
responsibilities include reviewing the debtor’s petition and
schedules and bringing actions against creditors or the debtor to
recover property of the bankruptcy estate. In chapter 7, the
trustee liquidates property of the estate, and makes distributions
to creditors. Trustees in chapter 12 and 13 have similar duties to
a chapter 7 trustee and the additional responsibilities of
overseeing the debtor’s plan, receiving payments from debtors,
and disbursing plan payments to creditors.
U.S. trustee: An officer of the
Justice Department responsible for supervising the administration
of bankruptcy cases, estates, and trustees; monitoring plans and
disclosure statements; monitoring creditors’ committees;
monitoring fee applications; and performing other statutory
duties. Compare, bankruptcy administrator.
undersecured claim: A debt secured by
property that is worth less than the full amount of the debt.