Bankruptcy Trustee Bond Definition
A bankruptcy trustee bond can be required of (as the name suggests) bankruptcy trustees by bankruptcy courts across the U.S. These bonds ensure that the trustee will uphold all of their responsibilities as ordered by the court, which is to the benefit of the trustee beneficiaries (usually creditors).
Bankruptcy Trustee Bond Types
Chapter 7 Trustee Bonds
This bond type is usually issued on a blanket basis, but can also be issued individually in certain situations.
Chapter 11 Trustee Bonds
This bond type is issued on an individual basis.
Chapter 12 and 13 Trustee Bonds
This type can be issued on an individual basis or a blanket basis. Blanket trustee bonds guarantee the performance of all panel trustees in a given district.