What Is The Difference Between A Bankruptcy Trustee And A Bankruptcy Examiner?
What is the difference between a bankruptcy trustee and a bankruptcy examiner?
A bankruptcy trustee and a bankruptcy examiner are both hired by a bankruptcy court to oversee the reorganization of an insolvent company. but they're different kinds of job positions and have very different responsibilities.
A bankruptcy trustee is a person appointed by a bankruptcy court after the company in question files for Chapter 11 bankruptcy. This person is responsible for ensuring that the company's assets are sold off and its debts are paid off as the company reestablishes itself.
A bankruptcy examiner is also appointed by a bankruptcy court, but unlike a trustee, he or she works with a company while it's still solvent and before it has filed for Chapter 11. A bankruptcy examiner's job is to work with the company to determine whether reorganization is feasible and in the best interests of all parties involved, including creditors, unions, bondholders, etc.
A bankruptcy trustee and a bankruptcy examiner serve the same function, but they have different roles. The trustee is in charge of taking care of the assets and selling them off to pay back creditors. The examiner is in charge of going through all of the records to find out exactly what happened to the insolvent company.
If you have any questions or need a Bankruptcy Lawyer, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
