Back to Chapter 7 Reference Materials  ...   Back to Chapter 7 Handbook

HANDBOOK FOR CHAPTER 7 TRUSTEES
TABLE OF CONTENTS

CHAPTER 1 -- INTRODUCTION

A.     PURPOSE

B.     THE BANKRUPTCY LAWS

C.     JURISDICTION AND VENUE

D.     ROLE OF THE UNITED STATES TRUSTEE

CHAPTER 2 -- APPOINTMENT TO THE PANEL OF TRUSTEES

A.     ELIGIBILITY

B.     QUALIFICATIONS

C.     TERM

D.     PERFORMANCE REVIEW

E.     TRAINING

CHAPTER 3 -- APPOINTMENT OF PANEL TRUSTEES TO CASES

A.     METHOD OF CASE ASSIGNMENT

B.     TIME AND DURATION OF INTERIM APPOINTMENT

C.     INVOLUNTARY CASES

CHAPTER 4 -- ELECTION OF A TRUSTEE

CHAPTER 5 -- QUALIFICATIONS AND ACCEPTANCE

A.     QUALIFICATIONS

B.     ACCEPTANCE UPON APPOINTMENT

C.     CONFLICTS OF INTEREST

D.     SOLICITATION OF GRATUITIES, GIFTS, OR OTHER REMUNERATION OR THING OF VALUE

E.     BONDS

CHAPTER 6 -- DUTIES OF A TRUSTEE

A.     STATUTORY AND GENERAL DUTIES

B.     TRANSMISSION OF DOCUMENTS

C.     INITIAL REVIEW OF PETITION AND SCHEDULES

D.     PROPERTY OF THE ESTATE AND REVIEW FOR ASSETS

E.     INITIAL REVIEW OF EXEMPTIONS

F.     REVIEW OF DEBTOR'S ATTORNEY FEES

G.     REVIEW OF STATEMENT OF INTENTION

H.     REVIEW FOR PETITION PREPARERS

I.       REVIEW FOR SUBSTANTIAL ABUSE UNDER § 707(b)
1.     DETERMINATION OF "PRIMARILY CONSUMER DEBT"
2.     DETERMINING SUBSTANTIAL ABUSE
3.     TIMING

J.     OBJECTION TO DISCHARGE

K.     BANKRUPTCY CRIMES

1.     DETECTING CRIMINAL ACTIVITY
2.     TYPES OF CRIMINAL CONDUCT
3.     COMPLIANCE WITH THE TRUSTEE'S DUTY TO REPORT CRIMINAL CONDUCT

L.     CONTROL AND PRESERVATION OF PROPERTY

M.     ENVIRONMENTAL ISSUES

N.     CASE PROGRESS

CHAPTER 7 -- SECTION 341(a) MEETING

A.     CONDUCTING THE MEETING

B.     RESCHEDULING AND CONTINUANCES

C.     NON-ATTENDANCE BY ATTORNEYS

D.     NON-ATTENDANCE BY DEBTORS

CHAPTER 8 -- ADMINISTRATION OF A CASE

A.     DETERMINATION AND ADMINISTRATION OF NO-ASSET CASES

B.     CLAIMS BAR DATE

C.     EXEMPTIONS

D.     ABANDONMENTS

E.     TAX CONSIDERATIONS

F.     TURNOVER DEMANDS

G.     EXECUTORY CONTRACTS AND UNEXPIRED LEASES

H.     AVOIDANCE POWERS

I.     CONTESTED MATTERS AND ADVERSARY PROCEEDINGS

J.     OPERATING THE DEBTOR'S BUSINESS

K.     SALE OF ASSETS

1.     GENERAL STANDARDS
2.     SALE FREE AND CLEAR OF LIENS
3.     SALE OF JOINTLY OWNED PROPERTY
4.     SALE OF SECURED PROPERTY
5.     CONDUCT OF SALES

L.     PERIODIC PAYMENTS

M.     EMPLOYMENT AND SUPERVISION OF PROFESSIONALS

1.     DEFINITION OF PROFESSIONALS
2.     EMPLOYMENT STANDARDS
3.     EMPLOYMENT PROCEDURES
4.     SUPERVISION OF PROFESSIONALS
5.     TRUSTEE AS ATTORNEY OR ACCOUNTANT FOR THE ESTATE
6.     AUCTIONEERS

N.     PROFESSIONAL AND TRUSTEE FEE APPLICATIONS

O.     REVIEW OF CLAIMS

P.     SUBORDINATION OF CLAIMS

Q.     UNPAID QUARTERLY FEES

R.     ORDER OF PAYMENT

S.     ASSET CASE CLOSINGS

1.     TRUSTEE'S FINAL REPORT (TFR OR PRE- DISTRIBUTION REPORT
2.     DISTRIBUTION OF FUNDS
3.     TRUSTEE'S FINAL ACCOUNT (TDR OR POST- DISTRIBUTION REPORT)

T.     DISMISSALS AND CONVERSIONS

1.     DISMISSALS OR CONVERSIONS OF A CHAPTER 7 CASE
2.     CONVERSION OF CASES FROM ANOTHER CHAPTER TO CHAPTER 7

U.     REOPENING CLOSED CASES

CHAPTER 9 -- FINANCIAL POLICIES, PROCEDURES AND
REPORTING REQUIREMENTS

A.     DEPOSIT AND INVESTMENT OF ESTATE FUNDS

1.     TYPES OF ACCOUNTS
2.     OPENING THE ACCOUNT

B.     FINANCIAL REPORTING AND RECORD KEEPING

1.     INDIVIDUAL ESTATE PROPERTY RECORD AND REPORT (FORM 1)
2.     CASH RECEIPTS AND DISBURSEMENTS RECORD (FORM 2)
3.     SUMMARY INTERIM ASSET REPORT (FORM 3)

C.     SPECIAL CONSIDERATIONS FOR COMPUTER SYSTEMS

1.     SELECTION OF A COMPUTER SERVICE PROVIDER
2.     PROVISION OF COMPUTER HARDWARE AND SOFTWARE
3.     SECURITY
4.     EMERGING TECHNOLOGICAL ISSUES

D.     OTHER RECORD KEEPING PROCEDURES AND INTERNAL CONTROLS

1.     SEGREGATION OF DUTIES
2.     MONITORING BANK ACCOUNTS AND CHECK STOCK
3.     RECEIPTS
4.     HANDLING CURRENCY
5.     EARNEST MONIES
6.     ACCOUNTS RECEIVABLE
7.     DISBURSEMENTS
8.     MAINTAINING ESTATE RECORDS

E.     AUDITS, EXAMINATIONS, AND REVIEWS

1.     RESOLUTION OF OIG AUDITS AND UST FIELD EXAMINATIONS
2.     RESOLUTION OF CASE ADMINISTRATION REVIEWS

CHAPTER 10 -- COMPLIANCE MEASURES

A.     REMEDIAL AND ENFORCEMENT ACTIONS

B.     PROCEDURES FOR SUSPENSION AND TERMINATION (28 C.F.R. § 58.6)

FORMS AND INSTRUCTIONS

SAMPLE CHAPTER 7 CASE AND ILLUSTRATIVE FORMS 1, 2, AND 3

APPENDICES

A

SECTION 341(a) MEETING OF CREDITORS

B

SAMPLE TRUSTEE'S REPORT OF NO DISTRIBUTION (NDR)

C

UNITED STATES TRUSTEE FEE GUIDELINES

D

SEGREGATING DUTIES IN A SMALL TRUSTEE OPERATION

E

PROCEDURES FOR SUSPENSION AND REMOVAL OF PANEL TRUSTEES AND STANDING TRUSTEES

F

NOTICE OF VOLUNTARY SUSPENSION

G

POLICY STATEMENTS FOR EARNEST MONIES AND HANDLING CASH

INDEX

TABLE OF AUTHORITIES

Handbook for Chapter 7 Trustees
Effective 10/1/98
Page Last Updated on Wed., Nov. 29, 2000
U.S. Trustee Program/Department of Justice
usdoj/ust/ogc/ajc