trustee in bankruptcy

Definitions of "trustee in bankruptcy"
  1. A court-appointed official who takes ownership of a debtor's property which is to be used for the benefit of the creditors. Their role is to manage this property to make certain that payments are made to these creditors according to the importance of their claims
  2. In a chapter 7 or chapter 11 case, the trustee in bankruptcy is responsible for collecting all property that makes up the bankruptcy estate and transforming it into money to pay off claims
  3. In a chapter 12 or chapter 13 case, the trustee in bankruptcy's main responsibility is to oversee the distribution of payments made by the debtor, ensuring it aligns with the stipulations of a confirmed plan
How to use "trustee in bankruptcy" in a sentence
  1. After declaring bankruptcy, all his assets were handed over to a trustee in bankruptcy to distribute to his creditors.
  2. In a Chapter 7 bankruptcy case, the trustee in bankruptcy is tasked with liquidating assets to pay off the debtor's obligations.
  3. Following a Chapter 13 bankruptcy, the trustee in bankruptcy plays an important role in ensuring payments are made according to the agreed upon plan.

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