When people file for Chapter 7, a trustee will be selected from a random panel of lawyers. During liquidation, the trustee will sell property and give the proceeds to people’s creditors. The trustee will also sit down with bankruptcy petitioners during a 341 meeting to ask questions about their income, debts and overall finances. After the 341 meeting, the trustee reviews the bankruptcy paperwork and asks questions about nonexempt property.
When people file for Chapter 13, the bankruptcy trustee will still have a 341 meeting and discuss people’s assets and finances. However, instead of taking assets and going through the liquidation process, the trustee will assess people’s repayment plans to see if it meets requirements and is feasible. The trustee may also offer financial counseling or financial management services.