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Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5733
Experience:  20 years of professional experience
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In a chapter 11 case does the bankruptcy judge have the right

Customer Question

In a chapter 11 case does the bankruptcy judge have the right to appoint a receiver or a manager since the debtor is not taking care of the properties since there is litigations with the debtors husband as they are in middle of a divorce (not to appoint a trustee as I know the judge has the right)
please provide back up papers or cases not yes or no
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Maverick replied 7 years ago.

There is no "quasi trustee" provision under the BK Code; 11 U.S.C section 330(a) (1) ; See Lamie v. U.S. Trustee 540 U.S. 526, 533 (2004).


So the answer to your question is that in a chapter 11 the judger does not have the authority to apppoint a receiver or manager ( also known as "responsible person" other than a trustee). There was a court that did it so 20 years agao and the decision was shot down by other judges afterwards and limited in its holding to the facts of that case.


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