It occurred to me that I have been using several terms without clearly defining what, or who, they are.
The Debtor
There are five principal actors in the bankruptcy process. The first is the debtor. The code defines a debtor as a person concerning which a case has been commenced. In other words, it’s you—the client of a consumer bankruptcy lawyer.
Creditors
You may think of creditors as the people to whom you owe money, but creditors are defined as entities that have a claim against the debtor that arose at the time of or before the order for relief concerning the debtor. Notice that the definition doesn’t say someone to whom the debtor owes money. Because of this, someone who has a claim but has not acted upon it is a creditor under the bankruptcy code. For example, if you hurt someone in a car wreck, that person has a claim against you, even though they may not have acted upon it. Because the amount of a claim may not be certain, a debtor or a creditor may mark a claim as unliquidated (or uncertain amount).
The Trustee
The Chapter 7 Trustee or the Chapter 13 Trustee is, for most debtors, the face of the bankruptcy court. Generally, he or she is the only court official that the debtor will ever see. The Trustee has a variety of duties, depending on whether the bankruptcy is filed under Chapter 7 or Chapter 13. One of the Trustee’s duties can be roughly thought of as making sure the creditors receive as much money as they are allowed to receive under the Bankruptcy Code. The Trustee is also responsible for administering the meeting of creditors, and it is the trustee who usually asks the questions of the debtor at the meeting.
The U.S. Trustee
The Trustee should not be confused with the U.S. Trustee (UST). The UST is an official of the Department of Justice. For consumer debtors, his main duty is to further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code, monitor the conduct of bankruptcy parties and private estate trustees, oversee related administrative functions, and act to ensure compliance with applicable laws and procedures. Whew! That’s a mouthful!
Generally speaking, a debtor will have no contact with the UST.
The Bankruptcy Judge
A bankruptcy judge is a judicial officer of the federal court system who rules on any disputes or controversies in the bankruptcy system. Unlike other federal judges, bankruptcy judges are appointed by the judges of a circuit court of appeals and serve a 14-year term.
Most debtors, at least in this district, will never see the bankruptcy judge during their case.
Photo credit: Tadson
