Issue link: https://mbozikis.ufcontent.com/i/1422521
191 permanent trustee. 107 11 U.S.C. § 701. The interim trustee must be a disinterested person who is a member of the panel of private trustees maintained under 28 U.S.C. § 586(a)(1) or is already serving as trustee. 11 U.S.C. § 701(a)(1). If none is willing to serve, the U.S. Trustee may serve as interim trustee. 11 U.S.C. § 701(a)(2). A permanent trustee may be elected at the meeting of creditors held pursuant to Section 341 of the Bankruptcy Code 108 in a Chapter 7 proceeding by those non-insider creditors holding allowable, undisputed, fixed, liquidated, general unsecured claims against the debtor and who do not have an "interest materially adverse" 109 to the interests of the creditors eligible to vote for a trustee. 11 U.S.C. § 702(a). In order for a trustee of the creditors' choosing to be appointed, however, creditors holding at least 20% in amount of the eligible claims must request such appointment, at least 20% in amount of the eligible claims must actually vote and a candidate must receive votes equal to at least a majority in amount of the claims actually voted. 11 U.S.C. § 702(b)–(c). If any of these conditions are not satisfied, the interim trustee will continue as the permanent trustee. 11 U.S.C. § 702(d). Finally, if the permanent trustee dies, resigns, fails to qualify or is removed, creditors can elect a successor trustee in the same fashion as the election of the original permanent trustee. 11 U.S.C. § 703(a). If necessary, the U.S. Trustee can appoint an interim successor trustee pending election of a permanent successor trustee. 11 U.S.C. § 703(b). If no successor trustee is elected by 107 In the case of an involuntary proceeding, Bankruptcy Rule 2001(a) provides that an interim trustee may be appointed after the filing of the petition but prior to entry of the order for relief. However, in such an instance, the party requesting such appointment must post a bond to indemnify the debtor for any costs, attorney's fees and damages that are allowable where the court dismisses the involuntary petition other than on consent. F ED. R. BANKR. P. 2001(b); 11 U.S.C. § 303(i). 108 See Chapter III.H.2. for a discussion of the Section 341 meeting. 109 The term "interest materially adverse" is not defined in the Bankruptcy Code, but is determined based upon a variety of factors including the nature and size of the adverse interest.