"Arizona Chapter 11 Trustee"
In most Arizona bankruptcy cases, a Chapter 11 trustee is not appointed. The debtor retains possession of all
assets and is permitted to continue business operations. However, based upon an objection filed by a creditor,
or upon the courts own motion, a trustee may be appointed. Generally, the appointment of a trustee in Arizona
bankruptcy cases under Chapter 11 is based upon
a debtor's failure to comply with statutory requirements. Arizona bankruptcy trustees tend to specialize by chapter of
expertise.
| 11 U.S.C. §1104(a): "At any time after the commencement of the case but before confirmation
of a plan, on request of a party in interest or the United States trustee, and after notice and a hearing, the court
shall order the appointment of a trustee - (1) for cause, including fraud, dishonesty, incompetence, or gross
mismanagement of the affairs of the debtor by current management, either before or after the commencement of the
case, or similar cause, but not including the number of holders of securities of the debtor or the amount of assets
or liabilities of the debtor; or (2) if such appointment is in the interests of creditors, any equity security holders,
and other interests of the estate, without regard to the number of holders of securities of the debtor or
the amount of assets or liabilities of the debtor." |
In the matter of ARIZONA BANKRUPTCY PETITION PREPARERS, General order No. 89 issued by the U.S. District.
Arizona Bankruptcy Court., July 1, 2003. 11 USC 110(k) does not permit a bankruptcy petition preparer to engage
in activities "that are otherwise prohibited by law. including the rules and laws that prohibit the unauthorized
practice of law." The Supreme Court of the State of Arizona has enacted amendments to its Rule 31 governing the
unauthorized practice of law which became effective commencing July 1, 2003. Rule 31 sets forth the general rule
that only an active member of the State Bar of Arizona may practice law in the State. The amendments also create
a limited exception for certified legal document preparers provided that the services performed are in
compliance with State Code of Judicial Administration, Part 7, Chapter 2, Section 7-208.
Back to Arizona Bankruptcy words & phrases.
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