In a liquidating distribution the cash proceeds are
The Panel Trustee will cause a notice to be given to all creditors to file their claims with the Bankruptcy Court.The Panel Trustee will then pay creditors according to the priority level they have been given by the Trustee.
This could include payments made by the debtor to its creditors within 90 days of the bankruptcy filing or 1 year if the payments were made to related parties of the debtor.The Panel Trustee formulates questions to ask the debtor at the Section 341 hearing regarding the debtor's assets, liabilities, income and expenses.The Panel Trustee serves as the hearing officer for the 341 hearing. How and why is a Trustee appointed to a Chapter 7 Bankruptcy case? How is a Panel Trustee appointed to a specific case? In those cases, the trustee files a report of no distribution with the Court to indicate there will be no payment to the creditors. What are some common reasons for filing a Chapter 7 Bankruptcy? Generally, most assets held by the average debtor are considered to be exempt.