Justice Minister Liisa Pakosta is proposing to replace bankruptcy trustees with civil servants or to cover trustee fees from the state budget in certain proceedings. The state’s Insolvency Service said the idea is worthwhile, and one way to fund it could be an insolvency tax.
The Ministry of Justice said Estonia’s insolvency system is not sustainable in its current form. As a result, problems must be addressed to prevent the entire system from collapsing.
A bankruptcy trustee is an impartial official appointed by a court whose main task is to manage and carry out bankruptcy proceedings. The trustee acts as an intermediary who must protect the legal interests of both the debtor and creditors and ensure transparency.
One way to make…