Bankruptcy Trustee Services
The purpose behind Chapter 11 is to maximize the amount of money ultimately repaid to the creditors and to allow the debtor to emerge from bankruptcy as a revitalized entity, which generates employment and pays taxes. Chapter 11 is a part of the federal Bankruptcy Code that permits the bankrupt entity to continue its business while negotiating a new arrangement with its creditors under a "plan of reorganization."
In Chapter 11 cases, a firm may continue to operate, but creditors and the courts must approve a plan to repay debts. There is no required trustee unless the judge decides that one is necessary. If a trustee is appointed by the court, the trustee takes control of the business and assets.
However, if the court does not appoint a trustee, the debtor may elect to secure the services of professionals to provide guidance during the proceedings. If this is the case, then Eclipse works with the client to produce and successfully complete a turnaround plan in compliance with the bankruptcy code.