Trustee in bankruptcy


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Trustee in bankruptcy

An appointed trustee who supervises and administers the affairs of a bankrupt company or individual.

Trustee In Bankruptcy

A court- or government-appointed person who manages assets in bankruptcy. In the United States, trustees in bankruptcy have different duties depending on the type of bankruptcy filed. In Chapter 7 bankruptcy, the trustee liquidates all non-exempt assets and distributes the proceeds to creditors according to bankruptcy law and the court's directions. In Chapter 13 bankruptcy, the trustee reviews the debtor's plans and collects and distributes payments to creditors. In Canada, trustees in bankruptcy hold assets in trust and distribute them to creditors according to the dictates of the Bankruptcy and Insolvency Act.
References in periodicals archive ?
Creditors should remember that a trustee in bankruptcy acts as a court officer and owes a duty of care to both the creditors and the debtor.
Generally, if a tenant makes an assignment for the benefit of creditors or files for bankruptcy, the landlord has the right to (a) set off amounts held as security against the tenant's lease obligations and (b) reject the demands of the assignee and the trustee in bankruptcy for the return of the security deposit or prepaid rent.