Asked by Cierra Mahone on May 27, 2024
Verified
The debtor in a _____bankruptcy turns all assets over to a bankruptcy trustee.
A) Chapter 7
B) Chapter 9
C) Chapter 11
D) Chapter 12
E) Chapter 13
Bankruptcy Trustee
A person appointed by the bankruptcy court to administer the debtor’s estate in the interests of both the debtor and the creditors. The basic duty of the bankruptcy trustee is to collect and reduce to cash the estate property and to close up the estate as speedily as is compatible with the best interests of the parties.
Chapter 7
A provision of the Bankruptcy Code that provides for "liquidation," where a debtor's non-exempt assets are sold to pay creditors.
- Identify the different sections of the Bankruptcy Code and their respective objectives.
- Comprehend the criteria and methodology involved in submitting a bankruptcy filing.
Verified Answer
LP
Lourie PetersMay 31, 2024
Final Answer :
A
Explanation :
In a Chapter 7 bankruptcy, the debtor surrenders all non-exempt assets to a bankruptcy trustee, who then liquidates those assets to pay off creditors. This process is designed to give the debtor a "fresh start" by discharging most debts.
Learning Objectives
- Identify the different sections of the Bankruptcy Code and their respective objectives.
- Comprehend the criteria and methodology involved in submitting a bankruptcy filing.