Under a Chapter 11 reorganization, the debtor acts as a trustee.

Question

Quizplus · Accepted Answer

Under Chapter 11 bankruptcy, the debtor (usually a business) acts as a trustee and has the responsibility of managing their own affairs while undergoing reorganization. They are responsible for proposing a plan of reorganization, managing their assets and finances, and making decisions on behalf of the bankruptcy estate. This is different from Chapter 7 bankruptcy, where a court-appointed trustee is responsible for liquidating the debtor's assets and distributing the proceeds to creditors.

Under a Chapter 11 Reorganization, the Debtor Acts as a Trustee