Appointment of Trustee or Examiner in Chapter 11 Bankruptcy

The video tutorial explains the role of a debtor in possession, who acts as a trustee with various powers during bankruptcy. It discusses situations where creditors may request a court-appointed trustee due to concerns like fraud or mismanagement. The appointment of a trustee can hinder reorganization efforts, as they may not understand the business operations. Alternatively, an examiner can be appointed to monitor and advise the debtor in possession, ensuring informed decisions and protecting creditor interests.

What role does the debtor in possession play in bankruptcy proceedings?

• Serves as a trustee

• Operates as a lawyer

• Acts as a creditor

• Functions as a judge

Under what circumstances might creditors request the appointment of a trustee?

• When the debtor is too organized

• When the debtor is too wealthy

• In cases of fraud or mismanagement

• If the debtor is too cooperative

What is the primary consideration for a court when deciding to appoint a trustee?

• The debtor's wealth

• The debtor's popularity

• The totality of circumstances

• The number of creditors

How can the appointment of a trustee affect the reorganization process?

• It can thwart the process

• It can simplify the process

• It can delay the process

• It can enhance the process

What is the role of an examiner in bankruptcy proceedings?

• To serve as a judge

• To act as a special counsel and auditor

• To replace the debtor in possession

• To manage the creditors