Getting The Right Bankruptcy Trustee

Law360, New York (May 18, 2011, 12:16 PM EDT) -- Trustees play a critical role in the bankruptcy process. In a Chapter 7 liquidation, a trustee is appointed at the beginning of the case and administers the assets of the debtor typically through a sale process. In a Chapter 11 case, the debtor starts out as the administrator of its own assets — the debtor-in-possession.

However, the bankruptcy court may appoint a trustee in a Chapter 11 case in a number of circumstances, including evidence of fraud, mismanagement or incompetence. A Chapter 11 trustee may choose...
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