Role, powers, functions and duties of a trustee in bankruptcy


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Restructuring & Insolvency expert
Practice notes

Role, powers, functions and duties of a trustee in bankruptcy


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Restructuring & Insolvency expert

Practice notes
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This Practice Note is drafted on the basis that an insolvency practitioner (IP) has been appointed as trustee in bankruptcy (trustee). It does not consider the official receiver's (OR) position when acting as trustee.

The role and functions of a trustee

The general function and role of the trustee is to get in, realise and distribute the bankruptcy estate. In addition, the trustee is to review, adjudicate and agree creditors' claims. If the value of the bankruptcy estate permits, the trustee must pay a dividend to creditors after having first deducted a sum to cover the expenses of the bankruptcy.

As part of this process, the trustee will need to consider what assets belong to the bankruptcy estate and secure them so that they can be realised. For further reading on the steps they should take, see Practice Note: Protecting a trustee in bankruptcy's interest in property following their appointment.

A trustee must be licensed by a recognised professional body, qualified to act and have a sufficient bond in place, which is

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Jurisdiction(s):
United Kingdom
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Key definition:
Trustee in bankruptcy definition
What does Trustee in bankruptcy mean?

The insolvency practitioner who is charged with the realisation of the assets of a bankrupt for the benefit of such bankrupt's creditors.

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