What happens when someone files a petition in bankruptcy? Who is O'Brien in this scenario?
O'Brien is a trustee.
Bankruptcy Process
Bankruptcy is a legal process where a person, business, or other entity declares they are unable to repay their debts. This process is adjudicated by the court under federal law in the United States. The individual or company that initiates the bankruptcy proceedings is known as the debtor, while the entity to whom they owe money is known as the creditor.
Role of a Trustee
A trustee is a person appointed to oversee the administration of the property and assets of a bankruptcy estate. The trustee is responsible for managing the debtor's bankruptcy case under the supervision of the court. They are tasked with collecting the debtor’s property and assets, selling them, and distributing the proceeds to the creditors.
In the scenario provided, Norma has filed a petition in bankruptcy and entrusted her assets to O'Brien. O'Brien's role as a trustee involves selling these assets and distributing the funds to Norma's creditors as part of the bankruptcy process.
Overall, the trustee plays a crucial role in ensuring that the bankruptcy proceedings are carried out fairly and in accordance with the law. They act as a mediator between the debtor and their creditors, working to maximize the recovery for creditors while providing a fresh start for the debtor.
For further information on bankruptcy and the role of a trustee, you can refer to reliable sources such as legal websites, financial advisors, or consult with a bankruptcy attorney.