trustee

trustee

an agent of the court who manages the property of the debtor for the benefit of the creditors. The court appoints a trustee in most Chapter 7 cases and in Chapter 11 cases when it determines that the debtor's management should not remain in their control. This type of trustee should be distinguished from the U.S. Trustee, who plays an administrative role in all bankruptcy cases (Glossary of Common Bankruptcy Terms)

APPOINTMENT IN Chapter 11

(also debtor in possession)

The code presumes a debtor will remain in possession of its property and business in a Chapter 11 case. In cases of fraud, gross mismanagement or where the appointment is in the interest of creditors, the court may appoint a trustee to take over the business of the debtor. The appointment of a trustee terminates the debtor's exclusivity period. (Bernstein's Dictionary of Bankruptcy Terminology)

AUTHORITY TO OPERATE BUSINESS

In Chapter 7, a trustee has the obligation to close the estate as expeditiously as possible. The court may authorize the trustee to operate the business of a debtor for a limited period of time. (Bernstein's Dictionary of Bankruptcy Terminology)

AVOIDANCE POWERS

The powers granted by the code allowing the release of liens or the recovery of transferred property under certain circumstances. These powers include the ability to recover property that was the subject of a fraudulent transfer or preferential transfer by the debtor prior to the filing. (Bernstein's Dictionary of Bankruptcy Terminology)

COMPENSATION

The maximum compensation allowed a trustee is based on a fixed percentage of monies disbursed to parties in interest. The court may reduce that compensation where appropriate. Where the trustee is also employed as a professional attorney or accountant in the case, the court may compensate those services separately. (Bernstein's Dictionary of Bankruptcy Terminology)

DUTIES IN CHAPTER 7

The trustee's duties include collecting and liquidating the property of the estate, investigating the financial affairs of the debtor, furnishing such information as is requested by a party in interest and making a final account and report to the court and the United States Trustee. (Bernstein's Dictionary of Bankruptcy Terminology)

DUTIES IN CHAPTER 11

The Chapter 11 trustee's duties include those in Chapter 7 as well as operation of the business of the Chapter 11 debtor. (Bernstein's Dictionary of Bankruptcy Terminology)

DUTIES IN CHAPTER 12/13

The duties of the trustee in Chapters 12 and 13 include many of the duties of a Chapter 7 trustee, but also include hearings on the valuation of property, confirmation of the plan and modification of the plan after confirmation. The trustee also is to insure the debtor makes timely payments. (Bernstein's Dictionary of Bankruptcy Terminology)

ELECTION IN CHAPTER 7

At the section 341 meeting of creditors, the creditors present may elect a trustee other than the interim trustee. If there is no election, the interim trustee continues as the permanent trustee. (Bernstein's Dictionary of Bankruptcy Terminology)

INTERIM TRUSTEE

(see election of trustee)

In a Chapter 7 (liquidation) case, the Office of the United States Trustee immediately appoints an interim trustee to administer the case. At the meeting of creditors, the creditors may, in certain circumstances, elect a trustee to replace the interim trustee. If no election is held, the interim trustee becomes the permanent trustee. (Bernstein's Dictionary of Bankruptcy Terminology)

The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the United States trustee or Bankruptcy Administrator. (BankruptcyAction.com)

The person under the Bankruptcy and insolvency Act who administers bankruptcy and proposal estates. (Dictionary of Canadian Bankruptcy Terms)

an agent of the court who manages the property of the debtor for the benefit of the creditors. The court appoints a trustee in most Chapter 7 cases and in Chapter 11 cases when it determines that the debtor's management should not remain in control. This type of trustee should be distinguished from the U.S. Trustee, who plays an administrative role in all bankruptcy cases. (Common Bankruptcy Terms)

See bankruptcy trustee (SA-Bankruptcy.com)

the court appoints a trustee in every Chapter 7 and Chapter 13 case to review the debtor's schedules and represent the interests of the creditors in the bankruptcy case. The role of the trustee is different under the different chapters. (Bankruptcy in Brief)

United Glossary of Bankruptcy Terms 2012.

trustee

APPOINTMENT IN CHAPTER 11 (also ass Debtor in Possession) The code presumes a debtor will remain in possession of its property and business in a Chapter 11 case. In cases of fraud, gross mismanagement or where the appointment is in the interest of creditors, the court may appoint a trustee to take over the business of the debtor. The appointment of a trustee terminates the debtor's exclusivity period. AUTHORITY TO OPERATE BUSINESS In Chapter 7, a trustee has the obligation to close the estate as expeditiously as possible. The court may authorize the trustee to operate the business of a debtor for a limited period of time. AVOIDANCE POWERS The powers granted by the code allowing the release of liens or the recovery of transferred property under certain circumstances. These powers include the ability to recover property that was the subject of a fraudulent transfer or preferential transfer by the debtor prior to the filing. COMPENSATION The maximum compensation allowed a trustee is based on a fixed percentage of monies disbursed to parties in interest. The court may reduce that compensation where appropriate. Where the trustee is also employed as a professional attorney or accountant in the case, the court may compensate those services separately. DUTIES IN CHAPTER 7 The trustee's duties include collecting and liquidating the property of the estate, investigating the financial affairs of the debtor, furnishing such information as is requested by a party in interest and making a final account and report to the court and the United States Trustee. DUTIES IN CHAPTER 11 The Chapter 11 trustee's duties include those in Chapter 7 as well as operation of the business of the Chapter 11 debtor. DUTIES IN CHAPTER 12/13 The duties of the trustee in Chapters 12 and 13 include many of the duties of a Chapter 7 trustee, but also include hearings on the valuation of property, confirmation of the plan and modification of the plan after confirmation. The trustee also is to insure the debtor makes timely payments. ELECTION IN CHAPTER 7 At the section 341 meeting of creditors, the creditors present may elect a trustee other than the interim trustee. If there is no election, the interim trustee continues as the permanent trustee. INTERIM TRUSTEE (see Election of Trustee) In a Chapter 7 (liquidation) case, the Office of the United States Trustee immediately appoints an interim trustee to administer the case. At the meeting of creditors, the creditors may, in certain circumstances, elect a trustee to replace the interim trustee. If no election is held, the interim trustee becomes the permanent trustee.

US Bankruptcy 2012.