When an individual or partnership firm is unable to resolve its outstanding debts, an application for bankruptcy may be filed against them. This can be initiated either by the debtor themselves under section 122 of the IBC code, or by creditors under section 123 of the same code. In such cases, both parties have the right to appoint an insolvency resolution professional as the bankruptcy trustee to oversee the proceedings. The role of the trustee is to manage the complex situations that can arise when an individual or firm becomes insolvent. They take control of the debtor’s assets, which may include property, cash, and other possessions, and distribute them to creditors in accordance with the law. These assets are referred to as the “estate” and are used to pay off debts. Once the trustee is legally appointed by the adjudicating authority, they assume full responsibility for managing the estate and ensuring that it is distributed appropriately.

The Bankruptcy Trustee on behalf of the Debtor shall comprise:

• Hold property, sign into contracts, be sued or sued, enter into any agreements relating to bankruptcy, hire help, and execute powers of attorney in its name;
• Delve deeply into the bankruptcy issue to learn about the debts, assets, and valuation;
• Realize a bankrupt person’s estate
• The inheritance should be divided in accordance with the debt;
• Pay off several creditors’ debts;
• Continue the insolvent person’s business
• Any legal action involving the bankruptcy estate, whether to prosecute or defend it.
• Make concessions to creditors and resolve their lawsuits
• Any assets included in the bankruptcy estate, including goodwill, should be sold
• Use a representative
• Initiate legal action due to favoritism, undervalued transactions, or exploitative credit transactions