May 21, 2015

The role of the Trustee in bankruptcy involves several duties, which must be carried out in strict adherence to the Bankruptcy Act 1966.

According to Section 129 of the Act, the Trustee must take full control of the bankrupt person’s property. Furthermore, any properties belonging to the bankrupt automatically vest in the Trustee.

A Trustee in bankruptcy must notify the bankrupt’s creditors of the bankruptcy. They must also establish whether the bankrupt’s estate has any property that can be realised to pay creditors a dividend, and distribute any available funds to creditors in accordance with Sections 109 and 140 of the Bankruptcy Act.

A Trustee in Bankruptcy has the power to issue out notices to obtain required information, convene a meeting of creditors, pay out mortgages, initiate or defend any legal proceedings against the bankrupt, assess the bankrupt’s income for compulsory income contributions, and more.

If you are contemplating bankruptcy, it is critical that you seek the professional advice and services of a registered insolvency expert. Australian Bankruptcy Services (ABS) has a Registered Trustee on site who has thorough knowledge of the Bankruptcy Act and has had many years of experience in assisting individuals through their bankruptcy journey.

To find out more about the role of a Bankruptcy Trustee or how ABS can help you, call us today on 1800 462 767. All calls are confidential and can remain anonymous if you wish.