Asked by Ashley Grooms on Jul 06, 2024
Verified
The court vests the responsibility of liquidating the assets of the debtor for the benefit of all interested parties in the:
A) debtor in possession.
B) creditor in possession.
C) case trustee.
D) primary trustee.
Debtor in Possession
A debtor who retains possession and control of their assets while undergoing a reorganization under bankruptcy law, typically in Chapter 11 bankruptcy proceedings.
Liquidating
The process of closing a business and distributing its assets to claimants, often in the event of bankruptcy.
Assets
Resources or items of value owned by an individual or business, which can be used to cover liabilities or generate income.
- Assess the role and responsibilities of trustees in the bankruptcy process.
Verified Answer
ZL
Zemirah LandsJul 08, 2024
Final Answer :
C
Explanation :
The court appoints a case trustee to manage and liquidate the assets of the debtor on behalf of all creditors in a Chapter 7 bankruptcy case. The debtor in possession is responsible for managing assets in a Chapter 11 case, and a creditor in possession is responsible for managing assets in a Chapter 11 case if the debtor's management is removed. A primary trustee is not a term used in bankruptcy law.
Learning Objectives
- Assess the role and responsibilities of trustees in the bankruptcy process.