What assets do Panel Trustees
In an individual case, the Panel
Trustee will administer all assets that are not exempt. These assets could include: equity in the debtor's
vehicles (above the exemption), equity in the debtor's residence (above the homestead exemption), rental property,
timeshares, raw land, business assets, inventory, accounts receivable and lawsuits (i.e. personal injury lawsuits
pending or potential claims).
In corporate, partnerships or trust
bankruptcies, there are no exemptions afforded the debtor. In these cases, the Panel Trustee usually
administers all property of the debtor. The Panel Trustee may abandon property that has little or no value or
that is over secured by a lienholder. An abandonment is completed after the Panel Trustee gives notice to
creditors of the estate and no objections are filed. Business assets can include: real property,
machinery and equipment, deposits, bank accounts, accounts receivable, inventory, patents and other
intangibles. In some instances, the Panel Trustee may determine it to be in the best interest of creditors
for the Trustee to continue operating a business for eventual sale.
The Panel Trustee must seek Court
approval to operate such a business and must file reports with the Court indicating the progress of the business
operation. The Panel Trustee would only operate a business if he determines in his best business judgement
that the business would lose significant value if it were closed. Operating business typically would include:
restaurants, bars, leased property, nightclubs, etc.
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