Bankruptcy in Briefa service of the Moran Law Group |
Bankruptcy trustee:
The court appointed official who administers the debtor's bankruptcy estate.
A Chapter 7 trustee liquidates non exempt property and distributes it according to the scheme of priorities in the Code; the trustee also considers whether there are preferences or fraudulent transfers that can be recovered from which creditors can be paid. The trustee may bring a motion to dismiss the case as an abuse of the bankrutpcy system or to deny the debtor a discharge if the trustee finds evidence of fraud, perjury, or ineligibility.
A Chapter 13 trustee reviews the debtor's plan and collects and distributes payments made by the Chapter 13 debtor.
A debtor in possession is the debtor in a Chapter 11 proceedings; the "DIP" has the powers of the trustee under the Code and the responsibility to act as a fiduciary for creditors.
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