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2021 Stroock Bankruptcy Guide

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32 or property to be acquired by the debtor for purposes of consummating the plan. See id. The purpose of the examination of a debtor under Section 343 is "to enable creditors and the trustee to determine if assets have improperly been disposed of or concealed or if there are grounds for objection to discharge." H.R. REP. NO. 95-595, at 332 (1977); see S. REP. NO. 95-989, at 43 (1978). I. Eligibility and Compensation of Trustees and Professionals The Bankruptcy Code contains various provisions governing the eligibility and compensation of certain parties. However, these provisions are limited to parties that play fiduciary roles in a case, such as the trustee, debtor, and official committees, and generally do not apply to professionals retained by individual or ad hoc groups of parties in interest in a bankruptcy case. 10 For those entities, such issues will generally be addressed by private contract between the client and the professional. 11 1. Eligibility Requirements a. The Trustee Section 321 of the Bankruptcy Code sets forth the eligibility requirements that apply to all trustees serving in cases under the Bankruptcy Code. First, Section 321(a)(1) provides that an individual trustee must be competent to perform the duties of a 10 As discussed in Chapters V.A. and VI.A., in a Chapter 11 context, reference to a "trustee" generally also encompasses a debtor-in-possession. (A discussion of the debtor-in-possession is found below in Chapter VI.A.). However, this notion does not apply to the eligibility and compensation of a trustee discussed in this section of this Guide. In this context, reference to a "trustee" applies solely to a third party trustee appointed in a bankruptcy case. It does apply, however, when discussing the retention of professionals by a trustee. 11 However, if the individual or ad hoc group seeks to have its professionals compensated by the estate, then the Bankruptcy Code and Bankruptcy Rules govern. The compensation of such professionals through Section 503(b) is discussed in Chapter III.I.2. Furthermore, in the case of ad hoc groups, Rule 2019, discussed in Chapter III.B., is also relevant.

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