Which party is given the responsibility of liquidating a firm if it is necessary to do so?

Question

Quizplus · Accepted Answer

The responsibility of liquidating a firm falls on the bankruptcy trustee, who is usually appointed by the court in a bankruptcy case. The trustee's main role is to take control of the debtor's assets and manage them in a way that maximizes the value for the creditors. This may involve selling off assets, restructuring the business, or liquidating it altogether. The creditors committee may provide input and oversight, but the ultimate responsibility lies with the trustee. The bankruptcy judge oversees the proceedings and has the power to make decisions and approve the trustee's actions. The creditors themselves have a stake in the process, but they do not typically have direct responsibility for liquidating the firm.

Which Party Is Given the Responsibility of Liquidating a Firm