Role of a Trustee in Bankruptcy Continued
Among other things, the Trustee in bankruptcy has the following duties and obligations (non-exhaustive list):
- A Trustee must notify the creditors of a bankruptcy that the person has been declared bankrupt. Creditors are informed of the bankruptcy to dissuade them from taking any further action against the individual in respect of pre-bankruptcy debts.
- Within three months of declaring bankruptcy, a debtor must notify his or her creditors whether or not they will be reimbursed for any payments owed to them.
- A creditor who has any questions about the administration must provide documentation to the creditors.
- When property is used to pay creditors under a Bankruptcy or Liquidation Act, the trustee has a duty to determine whether or not the estate includes real property that can be sold.
- Determine whether or not the bankrupt transferred any property or money from the account that would otherwise satisfy creditors debts. A transfer may be voidable and subject to a recovery action.
- The trustee must recover any property belonging to the estate that the bankrupt may be entitled to.
- The Trustee must ensure that the bankrupt faithfully discharges all of the bankrupt’s duties.
- When a person is declared bankrupt, the trustee must consider whether or not the individual has committed any offences under the Insolvency Act and report those offences to AFSA.
- The trustee should refer to law enforcement any evidence of illegal conduct or activity which the bankrupt may have taken (i.e., fraudulent transfers).
- Administer an estate at minimal expense to creditors to ensure a sufficient dividend is declared.
Role of a Trustee in Bankruptcy FAQ’s
What is the role of a trustee in bankruptcy, and how does Brisbane Debt Solutions assist trustees in carrying out their duties?
A trustee in bankruptcy is responsible for managing the affairs of the bankrupt estate, including identifying and realizing assets, assessing and prioritizing creditors’ claims, and distributing funds to creditors in accordance with the order of priority. Brisbane Debt Solutions can assist trustees in carrying out their duties by providing expert advice and support throughout the bankruptcy process, helping to ensure that the trustee fulfills their obligations and that the interests of creditors and other stakeholders are properly represented.
What are the qualifications required to become a trustee in bankruptcy, and how can Brisbane Debt Solutions assist in this?
To become a trustee in bankruptcy, an individual must meet certain qualifications and be registered with the Australian Financial Security Authority (AFSA). Brisbane Debt Solutions can assist individuals in meeting these qualifications and obtaining registration as a trustee in bankruptcy by providing guidance and support throughout the process. This may involve assistance with the application process, training and education, and ongoing support and mentoring.
What are the powers of a trustee in bankruptcy, and how can Brisbane Debt Solutions assist in exercising these powers?
A trustee in bankruptcy has a range of powers to manage the affairs of the bankrupt estate, including the power to sell assets, investigate the affairs of the bankrupt, and initiate legal proceedings on behalf of the estate. Brisbane Debt Solutions can assist trustees in exercising these powers by providing expert advice and support, helping to ensure that they are used appropriately and in the best interests of the estate and its creditors. This may involve assistance with asset realization, investigation and analysis, and legal representation in court proceedings.