Creditors that become insolvent and cannot pay their debts must proceed directly to a bankruptcy trustee.

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Creditors who become insolvent and cannot pay their debts usually file for bankruptcy in court, and a bankruptcy trustee is appointed by the court to manage the case. However, it is not necessary for the creditor to directly proceed to a bankruptcy trustee without first filing for bankruptcy.

Creditors That Become Insolvent and Cannot Pay Their Debts Must