What is the role of a trustee in a bankruptcy?

The role of a trustee in a bankruptcy is to manage the debtor's estate. This involves overseeing the bankruptcy process to ensure that the assets of the debtor are properly accounted for and distributed according to the rules set forth in bankruptcy law. The trustee acts as a neutral party, responsible for evaluating the debtor’s financial situation and determining how best to handle the estate’s assets.

In a Chapter 7 bankruptcy, for example, the trustee will liquidate non-exempt assets of the debtor and use the proceeds to pay creditors. This management includes identifying and securing property, ensuring compliance with bankruptcy laws, and administering claims made by creditors. The trustee aims to achieve a fair distribution of the debtor's estate among the creditors while also adhering to legal requirements and protecting the rights of the debtor.

This role is crucial for maintaining the integrity of the bankruptcy process, ensuring fairness, and facilitating a resolution that allows the debtor a fresh start. In contrast, the other options focus on aspects that are either not the primary responsibility of the trustee or do not accurately reflect the trustee’s function within the bankruptcy system.