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A trustee is assigned to all Chapter 7 cases upon filing.
Technically, the first trustee is known as an interim bankruptcy
trustee, and may be replaced during the 341 meeting by a vote of the
creditors. The trustee is responsible for insuring that debtors file all
required forms, disclose all assets and liabilities, and forfeit assets
that are not covered by an appropriate exemption. During this
administrative process, creditors frequently file objections hoping to
negotiate a settlement of debt. When creditor motions become excessive,
abusive, or designed to extort settlements in lieu of paying unnecessary
attorney fees in defense, trustees may (and usually do) intercede and
protect deserving debtors.
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