What is the Function of a Trustee?
What is the Function of a Trustee in Bankruptcy?
The Trustee will make all appropriate investigations into the bankrupt estate and the financial affairs of the bankrupt. These investigations can date back to a certain period in order to ascertain whether or not invalid transactions have taken place, such as transactions and/or transfers that were done in order to defeat creditors or make preferential payments.
The trustee may report their investigations to the Insolvency and Trustee Service Australia (ITSA). When appropriate investigations have taken place and the divisible estate has been realised, the Trustee will then make distributions to creditors in proportion to their debts. The Trustee will have an unbiased approach, with the objective of ascertaining the divisible value of the bankrupt estate and then making appropriate distributions to creditors in order to satisfy the debt.
Duties of the trustee
receiving a dividend before the end of the bankruptcy;
(d) giving information about the administration of the estate to a creditor who reasonably requests it;
(f) taking appropriate steps to recover property for the benefit of the estate;
(g) taking whatever action is practicable to try to ensure that the bankrupt discharges all of the
(i) referring to the Inspector-General, or to relevant law enforcement authorities, any evidence of an
(j) administering the estate as efficiently as possible by avoiding unnecessary expense;
(k) exercising powers and performing functions in a commercially sound way.
(2) Where a person who became a bankrupt on a creditor‘s petition is unable to prepare a proper statement of affairs, the trustee may employ, at the expense of the estate, a qualified person to assist in the preparation of the statement.