Trustee in Bankruptcy
When a bankruptcy order is made by the court, the Official Receiver initially takes control of the debtor's property. The Official Receiver may continue to supervise the sale and distribution of the debtor's assets, if they assume the role of trustee in bankruptcy. The Official Receiver will decide if it is necessary to call a meeting of creditors, who may decide to appoint a licensed insolvency practitioner as the trustee in bankruptcy.
If the Official Receiver decides not to call a meeting of creditors, then creditors may demand a meeting, provided that those in favour of a meeting total 25% or more in value of the bankrupt's creditors. If the creditors choose not to appoint a trustee in bankruptcy, or a creditors' meeting has not occurred, then the Official Receiver will conduct the bankruptcy as the trustee in bankruptcy.
The Official Receiver does not necessarily investigate the conduct and affairs of every bankrupt, only where he considers it necessary. The bankrupt's property, less tools of the trade, clothing and furniture, will vest in the trustee in bankruptcy. The bankrupt is entitled to retain his income, subject to the trustee in bankruptcy's right to make an application for income payments if the sum exceeds the reasonable needs of the bankrupt.
If you would like to obtain legal advice on the role of a trustee in bankruptcy or the role of an Official Receiver, Caven can put you in touch with a local specialist personal insolvency solicitor free of charge. So, if you have any questions or would like our help in finding local personal insolvency solicitors please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 14/01/2013