OR or Trustee

london1973

I wonder if anyone could shed some light on this for me

How, when and why is a trustee appointed in bankruptcy, and can the creditors influence this decision? In my case the only potential contentious point is my previous property, which my ex-wife sold about 18 months ago, paid off the mortgage and used the proceeds to buy another place for her and my children- there are quite compelling reasons to suggest I don't have an interest, first her parents bought (almost all of) the initial property and secondly most of the subsequent mortgages were for my personal use and outweighed the total monies eventually released- (followers of my posts will be familiar with my past life-I'm not proud of it)

I explained this to the OR and he seemed to get it, inferring that a distribution of funds looked 'unlikely'- however presumably there is now a process when the above situation is considered and a decision is made as to whether a trustee is appointed?, and as I ask, is this explained to to the creditors for their input? I suspect most would def support a trustee getting involved, right? Informal legal advice I have taken suggests our case is quite strong and it would be hard for the OR/trustee to get their hands on anything, but it's a path I would rather avoid-is there anything I can do now to mitigate?

Thanks in advance, as always

luvchocolate

A trustee was appointed to my case, but it was complicated 3 houses a cheating ex with whom I had a declaration of trust with.
They were brilliant to be honest..their fees were £24,000 of which they received nothing.

london1973

Thanks, do you recall how it all panned out, I.e how long did it take (from OR interview) for the trustee to be appointed, how were you notified and introduced etc?

NotEvanAPot

A Trustee will be appointed for (very broadly speaking) 2 reasons only; complexity or sufficient assets.

The Insolvency Service cannot dedicate a huge amount of resource to individual cases, and the management of cases where asset disposal to disburse between creditors takes a fair amount of knowledgeable planning and overseeing.

luvchocolate

My trustees were appointed within a couple of weeks of my face to face interview.
I received a letter from them asking me to call them to arrange a meeting, I lived in Hull and there were in Grimsby, I invited them to my home for the meeting, they did say that was a first!!!
That was October 2012, I got a letter 2 months ago to say they had closed my case...almost 4 years!!

london1973

out of interest, who pays the trustee if they don't manage to recoup anything from the bankruptcy- do they take the work at their own risk or are they obliged to carry it out if the OR appoints, and charge them accordingly if they get a nil result?

Just interested in how this particular dynamic works

NotEvanAPot

http://www.richardjsmith.com/cms_documents/documents/download/23/p1a5ucvbd8p5ffpb1nut13en13eb7.pdf

Chancery Division works with selected IP on a similar basis that a barrister may be instructed (cab rank rule).

A brief overview of fee structuring for cases with fair chance of significant recovery in the link above. They take on the work to recover on behalf of creditors but take a decent cut for themselves before distributing.

IPA/O recovery is handled by smaller (read: possibly lesser, cheap shot from previous career) IP firms, usually in a call centre dynamic.