Reg. at 51740. The United States Trustee removed the trustee based upon her conclusion that he was deficient in basic case administration. Notice at 2, 5-19. She concluded that he had failed to perform his duties in a consistently satisfactory manner, comply with policies of the Office of the United States Trustee, and correct deficiencies which were occurring on a continuing basis. Under the Bankruptcy Code, a chapter 7 trustee liquidates a debtor's non-exempt assets for the benefit of the estate's creditors.
Trustees thus hold large numbers of assets in trust for an estate's creditors.
United States Trustees supervise panel trustees. In order to determine whether panel trustees are protecting and accounting for property received, United States Trustees require trustees to provide a detailed report to the United States Trustee every 180 days. These reports enable United States Trustees to evaluate all aspects of a trustee's performance to determine whether the trustee is adequately protecting debtors and creditors and effectively managing estates. The reports also help prevent and detect fraud. In them, a trustee accounts for the property of the estate.