How a Bankruptcy Trustee Reserves For a Distribution

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A trustee in bankruptcy is simply an individual, often an entity, selected by the court to oversee the distribution of a bankruptcy estate. The trustee performs many duties in a bankruptcy case, including distributing the assets to the payees (the creditors) and keeping accurate records. The courts can also appoint other trustees to perform some or all of these tasks.

Trustees can be appointed by the court or a particular trustee selected by the debtor. Usually the debtor's agent or attorney provides this information to the court during the initial chapter 11 meeting. This initial meeting establishes the basic framework of the case in which the debtor will elect to have all their debts discharged and the trustee will organize the assets for distribution. However, there are a few cases where the chapter 11 process might result in additional duties for the trustee. These usually occur when there are outstanding debts that must be distributed according to the stipulations set forth in the chapter. Find the right Bankruptcy Trustee or check out this Consumer Proposal.

One of the most common situations in which a bankruptcy case may result in additional duties for the trustee is when the individual debtor files a joint petition with several creditors. In this case, the creditors must agree to a distribution formula. If the creditors do not agree on this formula, the court has the authority to make the decision. In many cases, the trustee will make the distribution based on a percentage of the total amount owed on the debts. If the creditors do not file a joint petition, the trustee must choose an alternative method of calculating the distribution.

In some cases, the trustee may also be responsible for distributing the assets of a bankrupt individual debtor if the individual does not opt for chapter 7 or chapter 13 bankruptcy. These proceedings require the consent of the creditors, and only the trustee can compel the creditors to agree to a distribution plan. Once the distribution plan is established, the trustee must distribute the assets according to the distribution plan.

BANKRUPTCY TRUSTEE: A bankruptcy administrator is selected by the bankruptcy court on the recommendation of the bankruptcy administrator. If the case trustee cannot find an acceptable candidate, the court may appoint a person to fill the position. The trustee will administer the distribution of the remaining assets. In many states, the individual who receives the property is protected from any action by creditors or their attorneys. The individual who receives the property may be required to pay a fee to the trustee, however, the fee must be paid only once. There are few states in which the individual who receives the property has no duty to pay a fee to the trustee.

Once the distribution is completed, the trustee must notify all creditors. If the creditor does not agree to the discharge, the case can be continued against the individual debtor. However, if the creditors agree to the discharge, the case is dismissed. For more information on Bankruptcy, see the California Bankruptcy Lawyer website. Continue reading more on this here: https://www.huffpost.com/entry/5-ways-to-get-out-of-debt_b_2397140.