When a business is struggling financially, the business may choose to file a Chapter 11 bankruptcy. In a Chapter 11, the business will be given the opportunity to reorganize while being protected from its creditors. If the bankruptcy is successfully completed, the company will have the opportunity to emerge stronger and debt free. However, before a business can get to this point, there are many complex business bankruptcy issues that must be addressed.
These issues are often handled by the bankruptcy trustee. According to the U.S. Courts, the bankruptcy trustee is responsible for managing many aspects of a Chapter 11 bankruptcy. First and foremost, the trustee supervises the process. During a Chapter 11 bankruptcy, the business will make payments to creditors as it runs its business. The trustee is responsible for overseeing these payments.
The trustee is also responsible for creating the requirements that a business must follow during the bankruptcy process. This includes monitoring the business's income, expenses and bank accounts. The trustee also ensure that other rules are being following including the payment of business taxes and the bankruptcy court's fees.
Additionally, the trustee will meet with creditors and run the Section 341 meeting. At this meeting, the creditors and the trustee will be able to question the debtor under oath. This will help the trustee and the creditors get a clearer understanding of the business's properties, income, assets and obligations.
The trustee is just one of many important parts of a Chapter 11 business bankruptcy. Understanding the role and duties of the trustee is important as people enter this process. An attorney can help people get a clearer understanding of bankruptcy issues as they move through the case.