What is a “liquidating trustee” in a Chapter 11 bankruptcy?

A liquidating trustee is a person appointed by a court in a Chapter 11 bankruptcy case. This person is typically a professional who is responsible for supervising and administering the liquidation of an insolvent company’s assets. The liquidating trustee has several key duties, including: to collect any remaining assets of the company, to sell these assets, to manage the funds generated from selling the assets, and to distribute proceeds among creditors. The liquidating trustee is supervised by the court and usually is appointed within a few months of the debtor filing for Chapter 11 bankruptcy. The liquidating trustee has all of the powers of the debtor and can take any action necessary to liquidate the assets in order to pay creditors. These actions may include selling off real estate, collecting overdue accounts, handling claims that the debtor has against other entities and managing any funds received from those claims. The liquidating trustee is also responsible for making sure that the creditors are paid in an orderly and fair manner. This trustee ensures that all creditors are treated equally and that no one creditor receives more than they should. The liquidating trustee is an important part of the Chapter 11 bankruptcy process in California. This important role helps to ensure that creditors are paid in a fair and proper manner, and that the liquidation of assets is handled in an efficient, orderly manner.

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What is a “liquidating trustee” in a Chapter 11 bankruptcy?

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