When a Los Angeles business makes the decision to follow through and file for Chapter 11 bankruptcy, there will be many issues that must be dealt with as the case moves forward. It can be a traumatic decision to make, both personally and professionally. Add in the complex business bankruptcy issues that might not be fully considered or understood and the process can be difficult to handle. It can help to understand the basics of the business bankruptcy process, including what it is that the U.S. trustee or bankruptcy administrator does.
The Chapter 11 bankruptcy has a U.S. trustee whose job it is to oversee the administration and its process. Everything surrounding the filing will be considered for oversight with the bankruptcy. When there is a Chapter 11 bankruptcy, there must be a meeting with the creditors. This is also referred to as a section 341 meeting. Both the creditors and the trustee can question the debtor under oath at this meeting. It can center around the acts of the debtor, the properties he or she has, their conduct and how the case is being administered.