Collier Family Law and the Bankruptcy Code: Property Interests of the Debtor and Other Family Members Affected by a Bankruptcy Case - Management, Control and Sale of Property of the Bankruptcy Estate
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Collier Family Law and the Bankruptcy Code
Copyright 2009, Matthew Bender & Company, Inc., a member of the LexisNexis Group.
CHAPTER 2 Property Interests of the Debtor and Other Family Members Affected by a Bankruptcy Case
1-2 Collier Family Law and the Bankruptcy Code P 2.06
P 2.06 Management, Control and Sale of Property of the Bankruptcy Estate.
[1] In General.
[a] Chapter 7.
In a chapter 7 bankruptcy case, the trustee is the representative of the bankruptcy estate and has the general duties of collecting and reducing to money the property of the estate as expeditiously as is compatible with the best interests of the parties in interest.n1 The trustee is appointed by the United States trustee at the outset of the case as an interim trustee,n2 who becomes the permanent trustee if no trustee is elected at the meeting of creditors.n3 However, exempt property is not liquidated for creditors and remains in the possession of the debtor.n4 As a practical matter, this means that, in most consumer bankruptcy cases, the trustee does not manage, control or sell any property, because no nonexempt property of any substantial value exists. However, the debtor's rights to dispose of significant items of property of the estate other than in the ordinary course of his or her affairs, at least until the property has been finally exempted or abandoned,n5 is limited by the potential avoidability of any such transfersn6 and possibly the automatic stay.n7 If the debtor wishes to sell a significant asset . . . .