Asked by Maricarmen Fierros on May 27, 2024
Verified
Which of the following is true regarding the rights of a trustee in a Chapter 7 bankruptcy?
A) The trustee may take possession of the debtor's property and have it appraised.
B) If someone else holds the debtor's property,the trustee has the power to require the person to return that property.
C) The trustee may temporarily take over the debtor's business.
D) The trustee may take possession of the debtor's property and have it appraised; if someone else holds the debtor's property,the trustee has the power to require the person to return that property; and the trustee may temporarily take over the debtor's business.
E) The trustee may take possession of the debtor's property and have it appraised,and if someone else holds the debtor's property,the trustee has the power to require the person to return that property; however,the trustee may not take over the debtor's business even temporarily.
Trustee
An individual or company responsible for managing and overseeing assets or property on behalf of another party.
Chapter 7 Bankruptcy
A provision of the bankruptcy code that allows individuals and businesses to discharge or eliminate most of their debts through the liquidation of assets.
Debtor's Property
Assets belonging to a debtor that may be used to pay off creditors.
- Comprehend the procedures and standards involved in the selection and duties of a trustee within the bankruptcy system.
Verified Answer
GM
Gabriela MonserratJun 01, 2024
Final Answer :
D
Explanation :
The trustee may take possession of the debtor's property and have it appraised; the trustee may examine the debtor's records and might even temporarily take over the debtor's business; and if someone else holds the debtor's property,the trustee has the power to require that the person return that property.
Learning Objectives
- Comprehend the procedures and standards involved in the selection and duties of a trustee within the bankruptcy system.