The examiner's main role is to file statements of misconduct and perform other investigatory functions that a trustee would generally perform.
An examiner may be appointed for Chapter 11 Bankruptcy, although this does not frequently happen. If an examiner is appointed their role is similar to a trustee's role but more limited. . The examiner may also (if authorized by the bankruptcy court) perform any other duties of a Trustee that the Debtor in possession has been barred from performing (11 U.S.C. § 1106).
Duties of the examiner may vary by bankruptcy case and is determined by the authority of the Bankruptcy Court. The bankruptcy court may, in some cases, have the examiner file the bankruptcy reorganization plan, assist with negotiations of the bankruptcy plan, and ensure all the debtor's claims have been properly categorized on the bankruptcy schedules.
Examiners can also determine if certain causes of action are valid and necessitate legal action or if objections to proof of claims should be filed. The bankruptcy examiner may not function as the trustee whose role is to operate the business of the debtor by taking their assets, selling them and distributing the money to repay the creditors in priority order.
More Help on Examiner
- Bankruptcy Court - United States federal courts have jurisdiction over all bankruptcy cases and the cases are not allowed to be filed in state court. - read more
- Chapter 11 Bankruptcy - Unlike Chapter 7 Bankruptcy which liquidates the debtors non-exempt assets, Chapter 11 Bankruptcy allows the Debtor (which is generally a corporation or partnership) to restructure their debt obligations and continue to operate their business (although the business is supervised by the bankruptcy court and should be managed and operated for the benefit of the creditors). - read more
- Trustee - The bankruptcy trustee program, created by the United States Department of Justice, manages and oversees the bankruptcy process to improve efficiency and guarantee the integrity of the bankruptcy system. - read more