07-22-2015, 09:59 PM
|
|
|
Confirmed User
Industry Role:
Join Date: Feb 2010
Location: California
Posts: 3,068
|
Quote:
Originally Posted by dyna mo
no, it's not, if they were not fine with it, they would not have pre-packaged the deal terms and presented it as fine to the judge. so it's not a misnomer, it's a nomer.
and it sounds like you got ch7 mixed up with ch11, ch7 requires a trustee, ch11, as i mentioned 2x above, defaults to *debtor in posession* and usually (routinely) does not have a trustee. a trustee runs the business while the business is in bankruptcy proceedings, something the debtor and creditors are very not fine with, thus pre-packaged terms presented to the judge and accepted by the judge.
|
That's like saying a guy who suggests taking a punch in the gut is fine with it when his only other alternative choice is getting kicked in the balls.
And in chapter 11, the reason a "trustee is not assigned" is when the debtor also takes on the responsibilities of a trustee in good faith. So in essence there is always a trustee in chapter 11. And when the creditors argue that the debtor is not performing his trustee duties in good faith, than an outside trustee is appointed.
"Section 1107 of the Bankruptcy Code places the debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform of all but the investigative functions and duties of a trustee. "
Chapter 11 - Bankruptcy Basics | United States Courts
And there is always a US Trustee that oversees the administration of chapter 11:
"The U.S. trustee plays a major role in monitoring the progress of a chapter 11 case and supervising its administration. The U.S. trustee is responsible for monitoring the debtor in possession's operation of the business and the submission of operating reports and fees. Additionally, the U.S. trustee monitors applications for compensation and reimbursement by professionals, plans and disclosure statements filed with the court, and creditors' committees. The U.S. trustee conducts a meeting of the creditors, often referred to as the "section 341 meeting," in a chapter 11 case. 11 U.S.C. § 341. The U.S. trustee and creditors may question the debtor under oath at the section 341 meeting concerning the debtor's acts, conduct, property, and the administration of the case. "
Chapter 11 - Bankruptcy Basics | United States Courts
Still all entirely irrelevant to the fact that that chapter 11 banrkruptcy is not voluntary in terms of creditors. |
|
|