Bankruptcy – Simplified Process and the Role of the Trustee in Bankruptcy
From the commencement of bankruptcy, the appointment of the Official Receiver takes place, who acts as the receiver and manager of the bankrupt’s property. However, where there are assets of any value or it is considered that a detailed investigation is necessary, a Trustee in Bankruptcy will normally be appointed, whose role is to investigate what assets there are and realise the assets for creditor distribution. The Trustee in Bankruptcy must be a Licensed Insolvency Practitioner.
The 3 Infographics on this page deal with: the appointment of the Trustee in Bankruptcy, Investigations into the Bankrupt’s Assets and the processes involved in Asset Realisations.
The whole process of bankruptcy is governed by strict rules, but each case is different with its own complexities, which means that experienced Trustees in Bankruptcy are needed to ensure the process is completed thoroughly and fairly. The Trustee in Bankruptcy is appointed either: by a meeting of the bankrupt’s creditors, or the Secretary of State, or by the Court. The appointment of a trustee in bankruptcy and the performance of the trustee can have a significant bearing on the outcome of the bankruptcy.
Here at Antony Batty our Licensed Insolvency Practitioners have been appointed as Trustees in Bankruptcy many times. Contact us or call us on 0208 088 0633 for bankruptcy advice. The initial meeting is FREE.
1. The Appointment of the Trustee in Bankruptcy
2. Trustee Appointment – Asset Investigation and Asset Realisation: The Matrimonial Home and Investment Properties
3. The Asset Realisation Process
The Trustee in Bankruptcy’s duties and responsibilities
The Trustee in Bankruptcy has several key legal duties:
- A duty to advertise their appointment publicly. This normally in the London Gazette.
- A duty to assist the Official Receiver. The trustee must provide the Official Receiver with information about the bankruptcy process as the Official Receiver might reasonably require from time to time.
- A duty to report to the Financial Conduct Authority (FCA) on any misconduct by the bankrupt.
- A duty to use the Insolvency Service Account. The TiB is required to pay all sums received over £5,000 into the Insolvency Service’account.
- A duty to keep separate accounts’ records for each bankrupt.
- A duty to investigate. The Trustee in Bankruptcy has no specific legal duty to investigate the affairs of the bankrupt, the requirement to locate and realise the bankrupt’s assets for the benefit of the creditors will normally require detailed investigations.
Can, or Will, the Court Interfere with The Trustee’s Discretion?
The Trustee in Bankruptcy has a number of on-going reporting requirements to make and is subject at all times to the supervision of the creditor’s committee or the Secretary of State if re is no Committee.
It is possible that if either the bankrupt, or the creditors, or both, are dissatisfied with any aspect of the trustee’s conduct during bankruptcy’s process, an application can be made to the Court for the trustee to be replaced. However, the Court would need to be provided with substantial evidence for this to happen.