Who/what is the trustee

Scared_witless

Hi everyone,
Lots of posts I am reading mention 'the trustee'. Just wondered who/what it is? Also, at what point will we come into contact with them? got OR int on Monday.
Kind regards
SW

fermi

Essentially a separate trustee is appointed when there are complicated assets to deal with.

In a simple case, the OR will act as the trustee.

But here is some of the official blurb.

From: http://www.insolvency.gov.uk/freedomofinformation/technical/generalbankruptcyqueries.htm

OFFICIAL RECEIVER’S & TRUSTEE’S ROLE

The Official Receiver is an officer of the Court. An insolvency practitioner may also become involved. An insolvency practitioner is an individual licensed to practise in insolvency matters and works in private practice.

The Official Receiver and the trustee in bankruptcy are two separate roles, and have separate responsibilities.

General case

The Official Receiver is involved in every bankruptcy. When a bankruptcy order is made, the Official Receiver has a duty (under the Insolvency Act 1986) to investigate where necessary, the bankrupt’s affairs and send a report to creditors.

Further, when a bankruptcy order is made, the Official Receiver is usually appointed ‘Receiver and Manager’ of the bankrupt’s estate. This means that the Official Receiver has to identify and protect the bankrupt’s assets prior to the appointment of the Trustee in bankruptcy.

The Official Receiver has to decide whether to call a meeting of creditors, the sole purpose of which is for the creditors to vote for the appointment of an insolvency practitioner as the Trustee in bankruptcy. The Trustee is responsible for realising the assets and sharing the monies out between the creditors. The Official Receiver still has his investigatory duty notwithstanding the appointment of a Trustee.

If a meeting of creditors is not called, the Official Receiver becomes Trustee in bankruptcy, so he has two roles to perform.

Exceptions

Secretary of State appointments

The Official Receiver may decide not be call a meeting of creditors, but apply to the Secretary of State for the appointment of an insolvency practitioner as Trustee in bankruptcy. This may happen for a variety of reasons, but commonly this happens where assets come to light after a no meeting decision has been made, or because the creditors agree to an appointment before a meeting and so it avoids the expense of the meeting.

IVAs (see separate section on IVA – individual voluntary arrangements)

Sometimes, if the debtor has been in an IVA which has failed, the supervisor of the IVA (who is an insolvency practitioner) may present the petition for bankruptcy. If the bankruptcy order is made, the supervisor may be made trustee of the bankrupt’s estate on the making of the order. The Official Receiver still retains his investigatory role.

Scared_witless

Thanks Fermi, I understand and thanks for the quick reply.
SW

dalip

ERM Fermi
I dont have any assets but i have been passed to a trustee.I assumed it was because i have an IPA in place. Dalip

fermi

dalip wrote: »

ERM Fermi
I dont have any assets but i have been passed to a trustee.I assumed it was because i have an IPA in place. Dalip

If I remember correctly then your file was transferred to RTLU (Regional Trustee & Liquidator Unit).

That is still part of the Insolvency Service, and is not a "separate" trustee.

A separate trustee who deals with major assets will normally be a licensed IP, who is independent from the OR/RTLU.

dalip

Yes i am with the RTLU sorry thought that was the same thing as a trustee:o .I have previously mentioned i am a little thick when it comes to these things:p .Cheers Fermi(at least i DO get your name right now.lol)

fermi

dalip wrote: »

Yes i am with the RTLU sorry thought that was the same thing as a trustee:o .I have previously mentioned i am a little thick when it comes to these things:p .Cheers Fermi(at least i DO get your name right now.lol)

Well RTLU are effectively the trustee. There always HAS to be a trustee.

It's just that when the case is relatively uncomplicated it's the OR/RTLU who take on that "role", rather than getting someone external to do it.

And believe me you're not thick. Some of this stuff just takes ages to get your head around.

dalip

Right got it now,i hope.If there are assets like houses/cars ect it gets passed to an external trustee like an IP.If things are "simple"(like me:p )and the OR has more or less finished invesigating my bc they basically get passed to a diferent part of the IS namely the RTLU to deal with minor assests or IPA. Have i got that right now Fermi:D .Bless you for your patience(sp)

fermi

Yep. Although, if the only major thing is a car, then original OR will most likely deal with that.

dalip

What even if the car is worth £12,000( thats what i meant to say expensive cars)
You could not do me a big favour and cast your eye over my thread i posted today about change of circumstances and give me your opinion please:D .Dalip

betterlatethannever

dalip wrote: »

Right got it now,i hope.If there are assets like houses/cars ect it gets passed to an external trustee like an IP.If things are "simple"(like me:p )and the OR has more or less finished invesigating my bc they basically get passed to a diferent part of the IS namely the RTLU to deal with minor assests or IPA. Have i got that right now Fermi:D .Bless you for your patience(sp)

And the award for the most acronym's ever in a single post goes to....... Dalip:T

:rotfl: sorry but that lot even had me baffled, so i'm glad you understand it Dalip:D