Bond Amount
Based on Court Requirement
Underwriting Criteria
Determined by the type of bankruptcy case that will be administered by the trustee
Requiring Entity
County of the Superior Court in which the bond is filed
Who is Required to Secure this Bond
In the United States bankruptcy proceedings, the U.S. Trustee appoints and supervises a panel of private trustees who are available to handle cases under the various chapters of the bankruptcy code. These trustees supervise the administration of cases. The law also allows the trustee to establish a blanket bond in favor of the United States, conditioned on the faithful performance of official duties by the panel of trustees. The U.S. Trustee establishes the penal amount. Such blanket bonds often include “per-case” limit and an aggregate limit per trustee.
Why is the Bond Required
The bond is required to ensure that the trustee carries out their specified duties as prescribed in the bankruptcy code. The trustee is responsible to the management and liquidation of assets depending on the type of bankruptcy case that has been filed.
Who is Protected Under this Bond
The Bankruptcy Trustee bond is made payable to the people of the United States and ensures that all trustees will carry out their duties faithfully. The bond generally protects the creditors involved in the bankruptcy proceeding.
Underwriting Process
The underwriting criteria for these bonds varies slightly depending on the type of bankruptcy proceeding that is being administered. However, the general items that are needed for these bonds are:
- Completed Application
- Personal Financial Statement
- Copy of the Court Order Appointing the Trustee to the Case
- Resume of Experience for Trustee
Once this information has been received, a response as to approval of the bond will be received within 1-2 business days.
What you Need to do Once you Have your Bond
Once the bond has been issued and released to the client, it must be filed with the court. The bond will remain on file with the court until the bankruptcy proceeding has been released by the court. The bond cannot be cancelled except by court order.
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.