Role of Trustee in Bankruptcy

The video tutorial explains the role of a debtor in possession in a bankruptcy case. It covers the procedural tasks such as collecting assets, notifying creditors, and managing claims. The debtor in possession can accept or reject ongoing contracts, recover preferential and fraudulent payments, and manage liens to ensure fair treatment of creditors and facilitate the bankruptcy process.

What is one of the initial tasks of a debtor in possession in a bankruptcy case?

• Selling off all assets immediately

• Ignoring creditor claims

• Collecting all assets to bring into the bankruptcy estate

• Paying off all creditors

How does a debtor in possession handle ongoing contracts?

• They can choose to accept or reject contracts based on their benefit to the estate

• They are required to accept all contracts

• They ignore all ongoing contracts

• They must terminate all contracts

What action can a debtor in possession take regarding preferential payments made before bankruptcy?

• They can reverse these payments to bring them back into the estate

• They must approve all such payments

• They can ignore these payments

• They can only review payments made after bankruptcy

What is the purpose of examining fraudulent payments in a bankruptcy case?

• To increase the debtor's liabilities

• To ensure the debtor keeps all assets

• To potentially bring those payments back into the estate

• To punish the creditors

What might a debtor in possession need to do with liens on the debtor's assets?

• Transfer them to another party

• Ignore them

• Strengthen them

• Remove or do away with them to free up assets