trustee in bankruptcy

Legal Definition of trustee in bankruptcy

: an officer of the court in whom ownership of a debtor's property is vested for the benefit of the creditors and who administers the property for the purpose of making payments to the creditors according to the priority of their claims: as
a : the trustee in a chapter 7 or chapter 11 case who is charged with duties that include collecting the property comprising the bankruptcy estate and reducing it to money for payment of claims
b : the trustee in a chapter 12 or chapter 13 case who is charged with duties that include distributing payments made by the debtor in accordance with a confirmed plan

called also bankruptcy trustee

— see also debtor in possession

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Dictionary Entries Near trustee in bankruptcy

trusteed

trustee in bankruptcy

trustee process

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Cite this Entry

“Trustee in bankruptcy.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/trustee%20in%20bankruptcy. Accessed 29 Jul. 2021.

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