Asked by Raheal Pasha on May 21, 2024
Verified
How is a determination made regarding selection of the permanent trustee in a Chapter 7 proceeding?
A) The bankruptcy judge appoints the trustee.
B) The bankruptcy executor appoints the trustee.
C) The court clerk appoints the trustee.
D) The debtor appoints the trustee.
E) The creditors elect the trustee.
Permanent Trustee
A trustee appointed to manage and administer a trust indefinitely until the trust’s objectives are fulfilled or the trust is legally dissolved.
Chapter 7
A provision under the U.S. Bankruptcy Code allowing for liquidation of a debtor's assets to pay off creditors.
- Understand the process and criteria for the appointment and role of a trustee in the bankruptcy process.
Verified Answer
LI
Lindsay IrwinMay 27, 2024
Final Answer :
E
Explanation :
One important purpose of the creditor's meeting is the election of a permanent trustee.The interim trustee might become the permanent trustee,or the creditors might elect a different one.The creditors elect the trustee because the trustee generally represents the creditors.
Learning Objectives
- Understand the process and criteria for the appointment and role of a trustee in the bankruptcy process.