Asked by Emmanuella Edoka on Jul 05, 2024
Verified
In a Chapter 7 proceeding, the bankruptcy trustee collects the debtor's estate and reduces it to cash, preserving the interests of the debtor and creditors.
Bankruptcy Trustee
A person appointed by the court to manage the debtor’s funds in a bankruptcy proceeding.
Debtor's Estate
The total sum of a debtor's legal rights, obligations, and owned property that might be used to repay debts.
Chapter 7 Proceeding
A Chapter 7 Proceeding refers to a bankruptcy process outlined in the United States Bankruptcy Code where a debtor's assets are liquidated to repay creditors.
- Gain insight into the position and tasks of a bankruptcy trustee throughout Chapter 7 cases.
- Distinguish between secured and unsecured creditors' claims in bankruptcy.
Verified Answer
GN
Geraldine NkwainJul 08, 2024
Final Answer :
True
Explanation :
In a Chapter 7 bankruptcy, the trustee is responsible for liquidating the debtor's non-exempt assets to pay off creditors, while also ensuring that the debtor retains any exempt property to help them get a fresh start.
Learning Objectives
- Gain insight into the position and tasks of a bankruptcy trustee throughout Chapter 7 cases.
- Distinguish between secured and unsecured creditors' claims in bankruptcy.