Bankruptcy Trustee
Barron's Banking Dictionary:
Top
Bankruptcy Trustee
Person named by a bankruptcy judge, with the consent of creditors, to manage the affairs of a debtor in bankruptcy. The trustee has legal authority to file claims on behalf of the debtor, set aside a Preference to one or more creditors, and also represent the interests of unsecured creditors or general creditors. Certain bankruptcy courts have a U.S. Trustee, a permanent trustee who handles all cases filed in that jurisdiction.
Investopedia Financial Dictionary:
Top
Bankruptcy Trustee
A person appointed by the United States Trustee, an officer of the Department of Justice, to represent the debtor's estate in a bankruptcy proceeding.
Although a bankruptcy judge has the ultimate authority on the distribution of assets, the trustee is charged with evaluating and making recommendations about various debtor demands in accordance with the U.S. Bankruptcy Code.
Investopedia Says:
The responsibilities of the trustee are different in a Chapter 7 bankruptcy proceeding (which is essentially a liquidation) than in a Chapter 11 proceeding, wherein the debtor hopes to emerge from the bankruptcy as a going concern. In a Chapter 7 proceeding, the trustee will manage the asset sales and then distribute the proceeds to creditors.
A Chapter 13 proceeding applies to individuals who hope to keep some of their assets in return for repaying certain debts.
Related Links:
If a company files for bankruptcy, stockholders have the most to lose. Find out why. An Overview Of Corporate Bankruptcy
Will the plan assets you've worked hard for be safe if you experience a personal financial crisis? Bankruptcy Protection For Your Accounts
Don't wait to be saved, find out where the lifesaving devices are and hang on tight! A Lifeline For Those Drowning In Debt
Find out how to determine whether this option will help or hurt your financial situation. Should You File For Bankruptcy?
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
Read more
Mentioned in
Reorganization
(finance term)
Debtor in Possession
(in banking)
Voidable Preference
(in banking)
Trustee in Bankruptcy
(finance term)
» More