Panel Trustee vs U.S. Trustee - what are their duties in chapter 7?

[Mom63]

I have tried searching but haven't found anything yet that explains the difference between the two trustees. Can someone explain to me the difference between the two in a chapter 7?

Thanks.

[justbroke]

The Panel Trustee is a regular attorney that has been appointed by the Office of the United States Trustee (OUST) to oversee the liquidation of cases in Chapter 7 bankruptcies. Their job is to make sure you have listed all your assets, have properly exempted real and personal property, to question you under oath about your finances preceding the filing (and even up to the 341 Meeting), and administer the bankruptcy estate (pay creditors). In about 95% of the Chapter 7 cases, they really do nothing but review your petition, validate your exemptions and assets, and hold the 341 Meeting; that's the typical "no asset" case.

The Office of the United States Trustee (OUST or UST) is responsible for the administration of the bankruptcy program as a whole. They are responsible for auditing so many cases each year, and are responsible for challenging cases that may be an abuse of the system. Actual fraud is referred by the UST to the U.S. Attorney's office for that District. The UST usually does not closely examine "under the median" income cases, preferring to focus their investigative power on "over the median" cases where abuse is more likely. The UST also deals with other bankruptcy chapters such as 9, 11, 12, and 13.

If you never hear from the UST before or at your 341 Meeting, then you will (likely) have a very smooth and uneventful 60-days after your 341 Meeting, and proceed to discharge. If the UST shows up at your 341 Meeting and is asking questions (or has demanded additional paperwork prior or shortly after the 341 Meeting), then the UST is "interested" in your case and it is quite possible that the UST will ask the judge to dismiss your case.

As I stated, about 95% of cases are no-asset, and about the same percentage, 95, enjoy UST-friendly discharges!

[Mom63]

Thank you so much for that info. Looks like I am in the 60 day club