What is a “Chapter 11 trustee”?

A Chapter 11 trustee is a person appointed to take control of a business’s assets upon filing for bankruptcy in Virginia, under Chapter 11 of the U.S. Bankruptcy Code. The trustee’s primary role is to manage the bankruptcy proceedings, ensure that the best outcome is achieved for creditors, and protect the business’s assets for the benefit of all parties involved. The Chapter 11 trustee is appointed by the U.S. Trustee Program and has broad powers to check the accuracy of records and conduct investigations into any aspect of the business or its finances. They will also be in charge of collecting and liquidating the debtor’s assets in return for payment to the creditors. The Chapter 11 trustee also has responsibility to monitor the debtor’s management and operations, to ensure that the business is meeting its obligations and the terms of the bankruptcy plan. They will review the business’s financials and make sure that the debtor is adhering to its budget and other administrative requirements. The Chapter 11 trustee will also act as a liaison between the debtors, creditors, and the court, as well as oversee the day-to-day management of the business. It is their responsibility to ensure that the debtors perform their obligations to the court and creditors, and will also monitor the debtor’s compliance with any post-bankruptcy agreements that have been made. In summary, a Chapter 11 trustee is appointed to take control of a business’s assets and manage the bankruptcy proceedings. The trustee has the power to investigate the business, collect and liquidate assets, monitor the debtor’s management and operations, and act as a liaison between the debtors, creditors, and the court.

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What is a “Chapter 11 trustee”?

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