Can A Bankruptcy Judge Remove A Chapter 7 Trustee for Cause Such As Breach of Fiduciary Duty?

Yes, under Section 324(a) of the Bankruptcy Code, the Bankruptcy Court can remove a trustee (other than the U.S. Trustee) for cause, which includes breach of fiduciary duty. This is highly unusual, but it can occur.

And under Section 324(b), unless the Court orders otherwise, if a trustee is removed from one case for cause, he (or she) "shall thereby be removed in all other cases under this title in which such trustee or examiner is serving...".

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization