How trustee has liquidated the debtor's assets

Question

How trustee has liquidated the debtor's assets?

Answer 1

After the trustee has liquidated the debtor's assets and distributed the proceeds, the discharge of a bankrupt usually cancels the unpaid portion of debts remaining; the debtor has a clean slate and can start business again. A discharge is given at the court's discretion when it thinks that it is proper to do so. Reasons to refuse or suspend the discharge include payment of less than 50 cents on the dollar to unsecured creditors unless the debtor can't be held responsible under the circumstances, failure to keep proper books, continuing to trade once the debtor knew he was insolvent, causing bankruptcy by extravagant living, and being a bankrupt before. A bankrupt debtor who attempts to carry on business before a discharge is received must disclose that he is an undercharged bankrupt or be liable to criminal penalties.