Probate / Fiduciary
Bankruptcy Trustee Bond
A bond a bankruptcy trustee must file with the court, promising to faithfully handle the estate's money and property.
- Required by
- U.S. Bankruptcy Courts, with the amount set by the United States Trustee
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
Under 11 U.S.C. 322, the bond runs in favor of the United States and promises the trustee will faithfully perform the official duties of the office. If the trustee mishandles estate assets, a claim can be made on the bond. A suit on the bond must begin within two years after the trustee is discharged.
Who needs it
- Chapter 7 panel trustees
- Chapter 12 and Chapter 13 standing trustees
- Trustees elected or appointed in a specific case
What the underwriter looks at
- Value of estate assets the trustee will control
- Trustee's experience and record
- Trustee's personal credit and financial statements
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
When must the bond be filed?
Within seven days after the trustee is selected and before the trustee begins official duties, under 11 U.S.C. 322(a).
Who sets the bond amount?
The United States Trustee decides the amount and whether the surety is sufficient. The statute sets no fixed figure.