Bankruptcy Trustee

Definition

A court-appointed person who manages the bankruptcy estate on behalf of creditors. The trustee collects and sells non-exempt property, distributes the proceeds to creditors, and has the authority to pursue legal claims that belong to the estate.

Examples

• •If Keathley's personal injury lawsuit is estate property, the trustee — not Keathley — would control it and any recovery would go to his creditors.

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