Application for Bankruptcy is filed against an individual or a partnership firm if the resolution plan for an individual does not succeed, in case of pending debt. The application may be filed by the Debtor itself as given under section 122 of the IBC code or by the creditor under section 123 of the IBC code. Both, creditors or the debtor have the right to appoint an insolvency resolution professional as the bankruptcy trustee for the purpose of bankruptcy proceedings.
Bankruptcy trustees are the ones dealing with complex situations that can arise when someone becomes insolvent. The trustee in bankruptcy effectively takes control of the assets distributes proceeds to creditors, according to the law.
A bankrupt person’s assets which may be land, building, cash, or other such assets are taken into custody by the trustee. All these assets together refer to “estate” and shall be distributed to pay off the debts. Once the legal appointment through the adjudicating authority of the bankruptcy trustee is approved, the bankruptcy trustee is responsible and handed over the complete estate.
The Bankruptcy Trustee on behalf of the Debtor shall comprise:
How ASC helps?
With the experience of an insolvency professional, ASC is capable to arrange insolvency professionals to act as bankruptcy trustees.