A trustee in bankruptcy is an entity, often an individual, who is in charge of managing a bankruptcy property.
Video Trustee in bankruptcy
United States
In the United States, a Trustee in Bankruptcy is a person appointed by the United States Trustee Program, a division of the US Department of Justice. In limited circumstances, the creditor involved in the bankruptcy case may choose a trustee.
In Chapter 7 Bankruptcy ("Liquidation"), the trustee collects the non-excluded debtor's property, manages the funds from the sale of those assets, and then pays the fees and distributes the balance to the payable creditors.
In Chapter 13 Bankruptcy ("Reorganization"), the guardian is responsible for receiving the debtor's monthly payment and distributes the funds in proportion to the debtor's creditors. The Bankruptcy Trustee will act on behalf of the debtor to ensure that both the creditor and the interests of the debtor are maintained in accordance with the bankruptcy law, and will often be required to act as a negotiator between the two parties.
Since the 1990s, tasks similar to those of a guardian are sometimes performed by an individual called Chief restructuring officer (CRO), generally before, or later, bankruptcy proceedings (generally, Chapter 11 continues). CROs are company officials who have direct contact with creditors and who have executive powers to implement change. The advantage of using a CRO is that this arrangement gives both the creditor and the debtor more say about the future of the company than it might be in the case where Chapter 11 is declared bankrupt.
Maps Trustee in bankruptcy
Canada
See: Bankruptcy in Canada
In Canada, a trustee in bankruptcy is an individual or company licensed by an authorized supervisor to hold a trust and, later, to distribute property bankruptly among creditors under a distribution scheme under Bankruptcy and Insolvency Act (BIA). Persons who are bankrupt and all others who own the property go bankrupt must transfer the property to the trustee. The trustee can also assist individuals in preparing and submitting consumer proposals to creditors. The trustee must set up mandatory counseling from the bankrupt party. The trustee must follow the procedures under the BIA, call the creditor meeting and send the required parties notices the process and documents. The trustee is responsible for preparing pre-expense reports and may be against bankruptcy bankruptcy.
See also
- Recipient (legal)
External links
- National Association of Bankruptcy Trustees
- U.S. DOJ Assistant Program
Source of the article : Wikipedia
0 Comments