What Is The Function Of The Trustee In Bankruptcy?

Functions

The function of the trustee in bankruptcy is to get in, realise and distribute the bankrupt’s estate (defined in Section 283 of the Insolvency Act 1986) and in the carrying out of that function and in the management of the bankrupt’s estate the trustee is entitled, subject to those provisions, to use his own discretion. This is set out in Section 305 of the Insolvency Act 1986.

Duties

It is the duty of the trustee:

(a) to furnish the official receiver with such information,

(b) to produce to the official receiver, and permit inspection by the official receiver of, such books, papers and other records, and

(c) to give the official receiver such other assistance,

as the official receiver may reasonably require for the purpose of enabling him to carry out his functions in relation to the bankruptcy.

The official name of the trustee shall be “the trustee of the estate of …………, a bankrupt” (inserting the name of the bankrupt); but he may be referred to as “the trustee in bankrupty” of the particular bankrupt.

Section 306 Of The Insolvency Act 1986 – Vesting Of Bankrupt’s Estate In Trustee.

(1) The bankrupt’s estate shall vest in the trustee immediately on his appointment taking effect or, in the case of the official receiver, on his becoming trustee.

(2) Where any property which is, or is to be, comprised in the bankrupt’s estate vests in the trustee (whether under this section or under any other provision of this Part), it shall so vest without any conveyance, assignment or transfer.

Section 306 of the Insolvency Act 1986

Section 283 Of The Insolvency Act 1986 – Definition Of Bankrupt’s Estate

(1) Subject as follows, a bankrupt’s estate for the purposes of any of this Group of Parts comprises—

(a) all property belonging to or vested in the bankrupt at the commencement of the bankruptcy, and

(b) any property which by virtue of any of the following provisions of this Part is comprised in that estate or is treated as falling with the preceding paragraph.

(2) Subsection (1) does not apply to—

(a) such tools, books, vehicles and other items of equipment as are necessary to the bankrupt for use personally by him in his employment, business or vocation;

(b) such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his family.

This subsection is subject to section 308 in Chapter IV (certain excluded property reclaimable by trustee).

(3) Subsection (1) does not apply to—

(a) property held by the bankrupt on trust for any other person, or

(b) the right of nomination to a vacant ecclesiastical benefice.

Section 283 of the Insolvency Act 1986

Are you a creditor looking to recover your money?

If you are a creditor of an insolvent company or a bankruptcy, Oliver Elliot can help you address your claim and concerns arising from the insolvency.

Find out how

What Next?

Expert Advice Is Just A Click Away

If you have any questions in relation to What Is The Function Of The Trustee In Bankruptcy? then contact us as soon as possible for advice. Oliver Elliot offers a fresh approach to insolvency and the liquidation of a company by offering specialist advice and services across a wide range of insolvency procedures.

Our expertise is at your fingertips.

By submitting this form you agree with the storage and handling of your data by Oliver Elliot. For more details, please read our Privacy Policy.

Disclaimer: What Is The Function Of The Trustee In Bankruptcy?

This page: What Is The Function Of The Trustee In Bankruptcy? is not legal advice and should not be relied upon as such. This article What Is The Function Of The Trustee In Bankruptcy? is provided for information purposes only. You can contact us on the specific facts of your case to obtain relevant advice via a Free Initial Consultation.