Table Of Contents

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. APPOINTMENT AND QUALIFICATION OF INTERIM TRUSTEES
B. ASSIGNMENT OF CASES
C. TIME AND DURATION OF INTERIM APPOINTMENT
D. NON-PANEL TRUSTEES IN CONVERTED CASES
E. INVOLUNTARY CASES
F. SUCCESSOR TRUSTEES

CHAPTER 4 - ELECTION OF A TRUSTEE

A. ELIGIBILITY TO REQUEST AN ELECTION AND TO VOTE
B. TRUSTEE ELECTION PROCEDURE
C. DISPUTED ELECTIONS
D. QUALIFICATION OF ELECTED TRUSTEES
E. DUTIES AND RESPONSIBILITIES OF ELECTED TRUSTEES

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. INTRODUCTION
B. STATUTORY AND GENERAL DUTIES

1. COLLECTION AND LIQUIDATION OF ASSETS, ァ 704(1)
2. ACCOUNTABILITY OF THE TRUSTEE FOR ALL PROPERTY RECEIVED, ァ 704(2)
3. EXAMINING THE DEBTOR'S EXEMPTIONS AND STATEMENT OF INTENTION, ァ 704(3)
4. INVESTIGATE THE FINANCIAL AFFAIRS OF THE DEBTOR, ァ 704(4)
5. EXAMINE PROOFS OF CLAIM, ァ 704(5)
6. OPPOSE THE DISCHARGE OF THE DEBTOR, ァ 704(6)
7. FURNISH INFORMATION CONCERNING THE ESTATE, ァ 704(7)
8. OPERATING REPORTS, ァ 704(8)
9. FINAL REPORT AND FINAL ACCOUNT OF THE ESTATE, ァ 704(9)

C. REVIEW OF PETITION, SCHEDULES, AND STATEMENTS
D. REVIEW OF DEBTOR'S ATTORNEY FEES
E. REVIEW FOR PETITION PREPARERS
F. REVIEW FOR SUBSTANTIAL ABUSE UNDER ァ 707(b)

1. DETERMINATION OF "PRIMARILY CONSUMER DEBT"
2. DETERMINING SUBSTANTIAL ABUSE
3. TIMING

G. TRANSMISSION OF DOCUMENTS

CHAPTER 7 - SECTION 341(a) MEETING

A. CONDUCTING THE MEETING
B. RESCHEDULING AND CONTINUANCES
C. NON-ATTENDANCE BY ATTORNEYS
D. NON-ATTENDANCE BY DEBTORS
E. NOTIFICATION TO UNITED STATES TRUSTEE OF DEBTOR IDENTITY PROBBLEMS

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.INTERNET AUCTIONS
6. 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
7. APPRAISERS

N. COMPENSATION OF TRUSTEES AND PROFESSIONALS

1. COMPENSATION OF TRUSTEES
2. INTERIM COMPENSATION OF TRUSTEES
3. COMPENSATION OF PROFESSIONALS
4. APPLICATIONS FOR COMPENSATION

O. REVIEW OF CLAIMS

1. OBJECTIONS TO CLAIMS
2. UNPAID QUARTERLY FEES

P. SUBORDINATION OF CLAIMS
Q. REDEMPTION
R. REAFFIRMATION
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)
4. DISTRIBUTION REPORT FOR CLOSED ASSET CASES (FORM 4)

T. CASE PROGRESS
U. DISMISSALS AND CONVERSIONS

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

V. REOPENING CLOSED CASES
W. REFERRAL OF POTENTIAL BANKRUPTCY CRIMES

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

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. HANDLING OF FUNDS WHICH CANNOT, OR SHOULD NOT, BE DEPOSITED IMMEDIATELY
7. ACCOUNTS RECEIVABLE
8. DISBURSEMENTS
9. 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 10-1
B. PROCEDURES FOR SUSPENSION AND TERMINATION (28 CFR ァ 58.6)

FORMS AND INSTRUCTIONS

GENERAL INSTRUCTIONS FOR INTERIM REPORTS
FORM 1
FORM 2
FORM 3
FORM 4
UNIFORM TRANSACTION CODES-DESCRIPTION
INSTRUCTIONS FOR UNIFORM TRANSACTION CODES

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

H DECLARATION REGARDING ADMINISTRATION OF OATH AND CONFIRMATION OF IDENTITY ANDSOCIAL SECURITY NUMBER

I NOTICE OF CORRECTION OF SOCIAL SECURITY NUMBER IN BANKRUPTCY FILINGNUMBER IN BANKRUPTCY FILING

J NOTICE TO UNITED STATES TRUSTEE OF DEBTOR IDENTITY PROBLEM

Updated May 7, 2015

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