Is a trustee appointed when a company files a chapter 7 or chapter 11 bankruptcy petition?

A trustee is automatically appointed in all chapter 7 cases, whether it is a business or personal filing, but not in a chapter 11 case. In a chapter 11, a business continues to operate under the direction and control of management as a debtor-in-possession. A chapter 11 trustee can be appointed for various reasons on the motion of a party in interest or upon the court's own motion.

Legal Advice Disclaimer: The information presented on this website serves solely as general guidance and should not be construed as legal advice by MacDonald, Illig, Jones & Britton LLP as a replacement for seeking personalized legal counsel from a qualified attorney. MacDonald, Illig, Jones & Britton LLP does not assume liability for the accuracy or reliability of content hosted on any third-party websites accessible through links provided on this site.