Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Thank you so much for your response. My apologies - I had to sign off last night as I was having computer issues. My only follow-up question is - how is the bankruptcy trustee appointed and who is it usually? A bank? An attorney? My assumption then is that he/she/it would sell the church property at a relatively low price in order to expedite. You're right in your assumption that the property is valuable and, yet, we've been investigating rental of the building too.
Again, many thanks!
My only follow-up question is - how is the bankruptcy trustee appointed and who is it usually? A bank? An attorney? My assumption then is that he/she/it would sell the church property at a relatively low price in order to expedite. You're right in your assumption that the property is valuable and, yet, we've been investigating rental of the building too.
A: In a Chapter 7, the bankruptcy trustee is appointed by the U.S. Attorney General -- typically a trustee is a lawyer or CPA who is appointed to routinely represent unsecured creditors in bankruptcy proceedings.
In a Chapter 11, the debtor itself is the trustee (aka "debtor-in-possession" (DIP)) -- so, it would be your board of trustees that manages the bankruptcy (unless, there is evidence offered to the court that demonstrates that the DIP is engaged in fraudulent activities -- in which case a regular bankruptcy trustee is appointed.
Re selling at a low price, that doesn't generally happen. The trustee is paid a commission to manage estate assets, so the more the estate is worth, the more the trustee makes. Also, you can object to the sale price in court, if it's too low. So, while it's certainly possible for a trustee to funnel a sale to a friend or business associate at a lowball price (which would be a felony, among other things), if you're paying attention, that won't happen.
A: You're welcome and good luck.
Thanks for everything - very helpful!
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