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CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy Order for Individuals and Partnership Firms

A bankruptcy trustee has completed administration and distribution of the estate of a bankrupt. What must the trustee do next under the Code?

The trustee must convene a meeting of the committee of creditors, present a report of the administration of the estate, and retain sufficient sums to meet the meeting expenses. The committee then approves the report within seven days of receipt and decides on release of the trustee.

  1. AConvene a meeting of the committee of creditors and give it a report of the administration, retaining sums to meet the meeting expensesCorrect
  2. BFile the report with the Board and seek automatic release
  3. CSubmit the report to the bankrupt, who approves it within fourteen days
  4. DClose the estate without any report since distribution is complete

Explanation

On completion, the trustee convenes a creditors' committee meeting and provides a report of administration, retaining enough funds for the meeting costs. The committee approves the report within seven days of receipt and decides on the trustee's release under section 148. The bankrupt has no approval role.

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