Understanding the Role of a Bankruptcy Trustee
When you file for bankruptcy in Georgia, the court assigns a trustee to administer and oversee your case. A bankruptcy trustee is an impartial party whose job it is to review all of your financial statements for accuracy and ensure that all accompanying paperwork is in order.
In the event that you’re required to liquidate your assets, the trustee is the individual responsible for assessing the value of those assets. If you have assets not exempt from bankruptcy, the trustee will liquidate these assets in a way that achieves the maximum repayment possible to your creditors.
Trustees are present in all different types of debt resettlement cases, including those that involve individuals to large multinational corporations.
Recently, Bank of America made headlines for appealing to an impartial third-party trustee in the bankruptcy of Pro’s Ranch Market, a multimillion-dollar grocery chain. The bank decided to bring in a trustee to avoid the “decisional gridlock” that occurred when the company’s insiders attempted to liquidate the Pro’s Ranch Market assets.
This gridlock is because the company is a family-owned business and its owners have been unable or unwilling to liquidate the assets in an appropriate manner. Because the owners have such a stake in the grocery chain’s holdings, Bank of America has deemed them as unable to handle the liquidation effort. The large bank is seeking an impartial third party to help craft a liquidation plan that’s fair to both Pro’s Ranch Market and Bank of America.
These issues are complex, so be sure to work with a knowledgeable lawyer if you or your business faces the possibility of bankruptcy in Georgia.