3. Functions of a trustee or liquidator
The most operate of the trustee or liquidator is to realise and distribute the assets of the bankruptcy estate or company. The trustee or liquidator encompasses a duty to the creditors to get rid of the assets - subject to exemptions (see below) - of the bankruptcy estate or company for the simplest potential price. The aim is to enable the creditors to receive as massive a share of the assets as 3 doable when the fees, costs and expenses of the bankruptcy or liquidation are paid (see "Payments to creditors" for details of the order of distribution).
A trustee or liquidator could apply to court for an order restoring property which a bankrupt or company has disposed of in a very way that's unfair to their creditors (as an example if, before bankruptcy, a property had been transferred to a relative of the bankrupt for less than its full price).
In sure circumstances, a liquidator could additionally take action within the court against the administrators or former directors personally for the good thing about creditors of the company (for instance, for wrongful trading). A trustee may claim property obtained by a bankrupt throughout the bankruptcy. The trustee may also ask the bankrupt to pay, for up to 3 years, part of their wages, salary or other income to the trustee, or raise the court to get them organized to try and do therefore, if that income is more than the bankrupt and their family would like to live on while they're bankrupt.
A bankrupt's estate can not embody the following items, but the trustee can claim, sell and replace an item if the individual value is additional than the value of a reasonable replacement:
• tools, books, vehicles and other items of apparatus that a bankrupt desires to use personally in their employment, business or vocation;
• clothing, bedding, furniture and household equipment necessary for the fundamental domestic desires of the bankrupt and their family.
Information: http://www.bis.gov.uk/assets/bispartners/insolvency/docs/publication-pdfs/trusteesandliquidators.pdf
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