Liquidating the assets
They often avoid purchases of perishable or trendy goods that must be resold right away.They also stay away from products that are expensive to ship and to store.After the bankruptcy petition is filed, the United States Trustee appoints as trustee a disinterested person who is a member of a panel of Chapter7 trustees ("panel trustee") to serve as an interim trustee.The interim trustee serves until a permanent trustee is elected or designated at the Section 341 hearing.Instead, liquidators prefer to buy easy-to-move products with a long shelf life, such as power tools, books, toys and building materials.According to the Small Business Administration, preparing the assets for sale is the first step toward liquidation. Why are Panel Trustees necessary for the Bankruptcy System? Chapter 7 bankruptcy is a liquidation legal proceeding.The debtor is required to attend a Section 341 hearing which is commonly called the first meeting of the creditors. Creditors of the debtor are allowed the opportunity to ask questions of the debtor regarding the statements and schedules filed by the debtor with the Court.
A restaurant owner liquidating her assets may make more money if she liquidates vehicles and tools through a consignment sale and holds a liquidation sale at the restaurant for cooking supplies and equipment. Lindblad received her Juris Doctor from Lewis and Clark Law School.Our sole business objective is to orderly dispose of those assets assigned to us by Winthrop Realty Trust.For a description of our assets please see the Our Assets section.Marilyn Lindblad practices law on the west coast of the United States. How and why is a Trustee appointed to a Chapter 7 Bankruptcy case? How is a Panel Trustee appointed to a specific case? In those cases, the trustee files a report of no distribution with the Court to indicate there will be no payment to the creditors.