What is a “Chapter 11 trustee”?

A “Chapter 11 trustee” is a type of trustee that is assigned to handle bankruptcies filed under Chapter 11 of the United States Bankruptcy Code. Chapter 11 trustees are appointed in order to act as a “watchdog” over the debtors, making sure that the debtors do not do anything that may be considered an abuse of their bankruptcy proceedings. Chapter 11 trustees are responsible for overseeing the debtor’s operations and ensuring that the debtor complies with all court orders and deadlines. The Chapter 11 trustee may review the debtor’s financial statements, investigate the reason for the bankruptcy, identify any fraudulent activities, and review any proposed asset sales by the debtor. They are also responsible for monitoring the debtor’s plan of reorganization and helping the debtor fulfill their obligations. In some cases, a Chapter 11 trustee will also be responsible for acting as a mediator and negotiating agreements between the debtor and their creditors. Additionally, they may be responsible for collecting and distributing funds to creditors, as well as filing reports to the court regarding the bankruptcy proceedings. In Washington, a Chapter 11 trustee is appointed by the United States bankruptcy court. Anyone, including businesses, can apply to be appointed as a Chapter 11 trustee in Washington. The application process involves a background check and an interview, in order to determine the applicant’s qualifications for the position.

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What is a “Chapter 11 trustee”?

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