Bankruptcy Trust
/ˈbæŋkrʌptsi trʌst/
Definitions
- (n.) A trust established to manage and distribute assets from a bankruptcy estate, often for creditor benefit or settlement purposes.
The bankruptcy trust ensured equitable distribution of the debtor's assets among creditors.
Forms
- bankruptcy trust
- bankruptcy trusts
Related terms
See also
Commentary
Bankruptcy trusts are specialized entities used to centralize claims and asset management in complex bankruptcy proceedings, particularly in mass tort or asbestos cases.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.