N.Y. Debtor & Creditor Law § 135: Powers and duties of trustee

§ 135. Powers and duties of trustee. The trustee must collect the

demands, and sell the other property assigned to him. He must apply the

proceeds thereof, after deducting his commissions and expenses allowed

by law, as follows:

1. To the payment of the jail fees, upon the imprisonment and

discharge of the petitioner.

2. If any surplus remains, to the payment of the creditors, by virtue

of whose executions the petitioner was imprisoned, when he presented his

petition; or, if there is not enough to pay them in full, to the

payment, to each, of a proportionate part of the sum due upon his

execution.

3. If any surplus remains, he must pay it over to the petitioner, or

his executor or administrator.

Personal service upon a creditor, or his attorney, of written notice

of the time and place of making a distribution, as prescribed in

subdivision second of this section, has the same effect as publishing a

notice thereof, in a case prescribed by law.