Who controls a debtor’s assets in bankruptcy?
Minneapolis Bankruptcy attorney Steven Silton discusses how control of a debtor’s assets in chapter 7 bankruptcy is maintained by a trustee.
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In a Chapter 7 bankruptcy, a Chapter 7 trustee is appointed and that trustee controls the debtor’s assets. In a Chapter 11 bankruptcy, the debtor, if the debtor has not done anything fraudulent or untoward, the debtor can actually maintain control of their assets and either reorganize them pursuant to a Chapter 11 plan of reorganization, or assist in the orderly sale and liquidation of those assets.