WHICH FEDERAL BODY ACTS TO ADMINISTER CHAPTER 7 BANKRUPTCY?
Following the 2008 economic meltdown, the subsequent massive downsizing left many people unemployed. The effects of the recession were felt across the nation, including Maryland. The overall financial crisis fell hardest on the middle class and left thousands struggling to make payments on their bills. As a result, many failed to remain solvent and had to start over again. Filing for Chapter 7 bankruptcy and getting a fresh lease on life was the way out for many.
In the United States, the bankruptcy code and speedy resolution to cases filed under the code is the responsibility of the U.S. Trustee Program. The US Trustee Program forms an invaluable part of the Justice Department and is tasked with upholding and maintaining the Federal Bankruptcy System.
The U.S. Trustee Program is entrusted with fulfilling certain tasks, including the appointment and supervision of private trustees who will go on to administer Chapter 7 bankruptcy estates. In the absence of a private trustee, the trustee program itself can choose to act in its place.
The trustee program also investigates and seeks to prosecute any person or persons involved in criminal acts through fraud or abuse of the bankruptcy code. It also acts to review disclosure documents and allocations relating to the retention of professionals. The trustee program attempts to ensure that program fees are reasonable.
The trustee program’s executive office is located in the capital. It is also responsible for developing policy guidelines and providing legal guidance for the entire program.
Source: Justice.gov, “About the United States Trustee Program & Bankruptcy,” accessed on Sept. 25, 2014