Answer to Question 1
C
Answer to Question 2
The role of the private trustee is different from that of the U.S. trustee. Private trustees are appointed by the U.S. trustee to administer bankruptcy estates filed under Chapters 7, 11, and 13. Private trustees are not considered government employees but are private attorneys supervised by and working in conjunction with the U.S. trustee. There are two types of private trustees. One is a panel trustee, who serves on a panel in a particular judicial district and is assigned Chapter 7 bankruptcies and functions, in a role similar to that of an executor in a probate estate. The duties of the panel trustee consist of collecting the debtor's nonexempt assets, liquidating them to raise funds, and distributing whatever is left over to the creditors in order of priority. Standing trustees are responsible for administering Chapters 11 and 13 bankruptcies in designated geographic areas within the judicial district. Standing trustees who administer Chapter 13 cases review the financial status of the debtor, make recommendations to the bankruptcy court regarding confirmation of the debtor's repayment plan, collect money from debtors, and make payments to creditors pursuant to a bankruptcy court repayment plan. No trustees are appointed in Chapter 11 cases in which the debtor serves as its own trustee unless cause exists, in which case, the U.S. trustee or creditor can motion the court for the appointment of a case trustee.
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