Hotel Furniture Liquidators

1. Purpose of this guide

This guide summarises the functions and powers of a non-public sector insolvency practitioner who is appointed as:
• trustee of a bankrupt; or
• liquidator of a company in compulsory liquidation.

It additionally summarises how the practitioner is paid. Even though a personal sector insolvency practitioner may be appointed, the official receiver remains accountable for investigating the affairs of the bankrupt or company. If you've got any queries or information that may assist these investigations, please send them to the official receiver managing the case.

two. Appointment of an insolvency practitioner as trustee or liquidator

Only authorised persons could act as insolvency practitioners, and solely an insolvency practitioner can be appointed as trustee or liquidator as opposed to the official receiver.

The role of a trustee or liquidator is to understand the assets and make payments to creditors. The official receiver could act where the realisation of assets is simple. However, in most cases where the realisation is probably to be complex, the official receiver can look for to appoint a personal sector insolvency practitioner to act as trustee or liquidator, unless the court has already appointed one.

The insolvency practitioner will be appointed at a gathering of creditors or beneath powers given to the Secretary of State for Trade and Industry within the Insolvency Act 1986, usually at the request of, or in consultation with, the main creditor(s).

An insolvency practitioner can sometimes be appointed as trustee or liquidator inside four months of the bankruptcy or winding-up order being made. Within the meantime the official receiver can act as receiver and manager of the bankrupt's estate or as liquidator of the company, and can collect or defend the assets. An insolvency practitioner might be appointed later if, for instance, assets come to light or, within the case of a bankruptcy, when assets have been acquired since the date of the bankruptcy order or have increased in worth (e.g. an increase in house costs giving equity in an exceedingly property). A trustee can be appointed even when the bankrupt has obtained their discharge from bankruptcy if there are still assets within the bankruptcy to be addressed.

The official receiver can notify the bankrupt if an insolvency practitioner is appointed to deal with their affairs, however will not sometimes send a separate notification to creditors. An insolvency practitioner who is appointed trustee or liquidator at a gathering of creditors must advertise their appointment in an exceedingly newspaper where the advertisement is most likely to return to the attention of the creditors. If the insolvency practitioner is appointed trustee or liquidator by the Secretary of State, they have to offer notice to the creditors individually or, if the court permits, by a poster.

Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf
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