The Trustee plays an integral role in a debtor’s bankruptcy proceeding.  One of the roles of the Trustee is to oversee the bankruptcy to make sure all exemptions are used legally.  Also, in an “asset” case (a case where a debtor’s assets exceed the allotted exemptions) the chapter 7 Trustee will liquidate the excess assets for repayment to creditors.  The Trustee will also advise the debtor at the 341 meeting of creditors on the effects of bankruptcy and how to “safeguard” the discharge.

The chapter 13 Trustee plays a similar advisory role as that of the chapter 7 Trustee.  However, the chapter 13 Trustee disburses ALL money paid by the debtor via the chapter 13 plan to the creditors on the debtor’s behalf.  The chapter 13 Trustee also monitors the debtor.