The trustee in bankruptcy holds the property of the debtor "in trust" until such time as the debtor is able to manage their financial affairs again.At that point,the debtor's property is returned to them and they are allowed to continue as in the past without prior claims for debts being asserted against them.

Question

Quizplus · Accepted Answer

In bankruptcy, the trustee liquidates the debtor's non-exempt assets to pay creditors, and the debtor is discharged from most debts, not simply holding the property "in trust" for future return.

The Trustee in Bankruptcy Holds the Property of the Debtor