In Chapter 7, to whom are the debtor's assets turned over for distribution?

In Chapter 7, to whom are the debtor's assets turned over for distribution?

• A. Referee
• B. Bankruptcy Judge
• C. Debtor's Attorney
• D. Creditors

Answer: (A)

In Chapter 7 bankruptcy, the debtor’s assets are turned over to an impartial administrator who handles liquidating the estate and distributing the proceeds to creditors. This role, in the material you’re using, is called the referee (in modern practice often called the bankruptcy trustee). The referee takes control of the debtor’s assets, oversees their conversion to cash, and distributes the funds to creditors in the statutory priority under court supervision. The debtor, the debtor’s attorney, or the creditors do not manage this distribution, which is why the referee is the correct answer.

In Chapter 7 bankruptcy, the debtor’s assets are turned over to an impartial administrator who handles liquidating the estate and distributing the proceeds to creditors. This role, in the material you’re using, is called the referee (in modern practice often called the bankruptcy trustee). The referee takes control of the debtor’s assets, oversees their conversion to cash, and distributes the funds to creditors in the statutory priority under court supervision. The debtor, the debtor’s attorney, or the creditors do not manage this distribution, which is why the referee is the correct answer.