Under the Bankruptcy Act, the trustee in bankruptcy
was vested with broad title and rights to property of the debtor.
(6) Barger, 348 F.3d at 1292; see also Parker, 365 F.3d at 1272 (noting that "only the trustee in bankruptcy
has standing to pursue [the claim]").
"This Chapter 11 filing was prompted by proceedings in a bankruptcy case in Arkansas whereby a trustee in bankruptcy
for Equity Media Holdings Corporation was seeking a large judgment relating to the purchase by Debtor [Luken Communications] of Retro Television Network from Equity Media Holdings Corporation," confirms an affidavit by Luken Communication's acting president and CEO, David Leach.
All property belonging to or vested in the bankrupt at the date of the order will automatically vest in the trustee in bankruptcy
. If there is a family home, this will not escape the bankruptcy but will form part of the bankrupt's estate.
In that case you should discuss with the trustee in bankruptcy
whether you can hold it as her trustee without it being taken into account in your bankruptcy.
A trustee in bankruptcy
also has the power to challenge any transactions which took place shortly before bankruptcy where it is felt they were designed to dispose of assets and put them beyond the reach of creditors.
If it is not enclosed with the notice, you may want to obtain a copy from the Trustee in Bankruptcy
. The Statement of Affairs discloses the net realizable value of the assets, if any, and provides further derails regarding secured, preferred, contingent and unsecured creditors.