What is Trustee in Bankruptcy?

Trustee in bankruptcy is a lot like a receiver. Whenever a firm or a company files for bankruptcy then the court or creditors appoint a person who is called a trustee in bankruptcy in that particular company. The trustee in bankruptcy theoretical purpose is to save the company but in real life his main goal is to make enough money to pay back most of the debt what is owed to the creditors. The trustee in bankruptcy sometimes assumes the role of director and has a wide range of power. To successfully finish his jobs he usually liquidates the firm, or sells off everything that can be to raise enough money. In some cases receiver get only two weeks to accomplish their goal.