A Brampton bankruptcy trustee is a person who is hired to distribute assets and funds to creditors from the debtor. He or she is a non-partial participant who is hired to carry out certain tasks. A Brampton bankruptcy trustee may be a lawyer who is educated in bankruptcy laws and who can carry out the duties efficiently. Since there are different types of bankruptcies, the trustee needs to be aware of the various codes. He may have meetings with creditors to go over what is owed to them by the debtor.

Normally when a person files for bankruptcy they have many creditors that they owe money to. They could have several credit cards, a car loan, and a personal loan that they want to get out from under. In this case there are several creditors who are wanting to be able to get something out of the debtor without being left with nothing. Each creditor will be clamoring for a piece of the pie so to speak. When a debtor files for bankruptcy his assets may be seized and divided up among the creditors. If a person has a car loan, the bank that gave the loan may want to seize the car so they may sell it to recoup some of their losses. Normally assets such as electronics, furniture and jewelry that were purchased using credit cards or loans will be seized and sold. Even a certain amount of money may be taken from the debtor to compensate the creditors.

Brampton bankruptcy trustee is in charge of seizing the assets, and then selling items in order to compensate the creditors. A bankruptcy trustee may also be in charge during a bankruptcy reorganization plan for a corporation. When a corporation files for bankruptcy it is usually to give them a chance to reorganize their debts to creditors. The reorganization plan might be overseen by a bankruptcy trustee to ensure the plan is feasible, and that the company is abiding by it. The trustee may also help the company with the reorganization plan by going over the plan with the company and offering suggestions.

Since there are different types of bankruptcy codes the trustee has to be aware of the various laws governing bankruptcy. In some cases the trustee may be a lawyer, or he or she is appointed by a court of law. It may depend if the case is for an individual or a corporation as to what type of trustee is placed on a case. A trustee is normally paid a fee from the creditors. This fee may come from what is collected from the debtor or a flat fee from the court. A bankruptcy trustee does not make court appointed decisions as only the judge can make those. He will carry out the orders of the judge and whatever the judge decides the debtor should relinquish to the creditors.

Once the judge makes his decision, the trustee is ready to carry out the orders. If a large estate is being liquidated, the trustee may hold an estate sale or auction to liquidate the items in order to repay the creditors with cash. Most creditors will not want furniture, antiques or jewelry, preferring to be paid back with money instead of items. The bankruptcy trustee is in charge of the sale of goods, and then making sure the creditors are paid. Likewise the trustee may also ensure the creditors do not harass the debtor during the bankruptcy process and the seizing of items to be sold. A bankruptcy trustee is like a referee that works for both sides.