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Chapter 7 bankruptcy—changing trustee

The United States Bankruptcy Trustee appoints an interim trustee upon the filing of a chapter 7 case. Unless the creditors exercise their right to elect a different permanent trustee at the Section 341(a) meeting of creditors, the interim trustee automatically becomes the permanent trustee. Then the permanent trustee serves as trustee until the case is closed.

You generally can not request a different trustee—except in the rare situation in which you have a previous relationship with the trustee that the bankruptcy court would recognize as a disqualifying conflict of interest.

In Texas, as in other states, when a Chapter 7 bankruptcy case is filed, the United States Bankruptcy Trustee appoints an interim trustee to manage the case initially. This interim trustee may become the permanent trustee if the creditors do not choose to elect a different trustee during the Section 341(a) meeting of creditors, which is also known as the meeting of creditors. If no election is made by the creditors, the interim trustee automatically assumes the role of the permanent trustee. The trustee will then continue to serve in this capacity until the bankruptcy case is concluded. It is not common for debtors to request a change of trustee, and such requests are typically only considered if there is a demonstrable conflict of interest, such as a prior relationship between the debtor and the trustee that could affect the impartiality of the trustee's actions. The bankruptcy court has the authority to recognize such conflicts and make trustee changes if necessary.


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