find themselves becoming deeper and deeper in debt without even realising it until they get to the point where the only option they have is to file for bankruptcy because they cannot repay their creditors. This makes their lives very complicated, and their health and daily lives are adversely affected by their debt. Bankruptcy in the United Kingdom is a legal process that is presided over by the court system. Citizens can file for numerous different types of bankruptcy, but no matter what type of bankruptcy is filed a bankruptcy trustee is appointed to the case. Many people are concerned that the bankruptcy trustee will only be working for the best interest of the court and they are the bad guys. This is definitely not the case.
A good bankruptcy trustee
is an impartial participant in the case and they do not side with the debtor or the creditor. They do not work for the court system. As a matter of fact, they are an autonomous agent that acts as an intermediary for the creditors to see how much of the debt they can get back. They will take into account the debtor’s outstanding debts and then compare them to the debtor’s assets and income in an effort to determine what the debtor can liquidate to gain money to pay off their debt to the creditor. The trustee is not a government employee. They are simply appointed to the case by the courts. They are the ones who review the case when there is a disagreement or dispute, and they are responsible for ensuring that there are no fraudulent or misrepresentations on the bankruptcy claim from either the creditor or the debtor.
- When the debtor deals with the bankruptcy trustee they should make sure that they are completely honest with this court appointed representative. The debtor never wants to issue a false statement in the court or to the court’s representative. This is perjury and they could face fines and/or imprisonment. Because technology is so prevalent in today’s world, information can easily be verified and passed from party to party. Lying to the trustee will be known to other parties quickly. Plus if the debtor is honest with the trustee, they may be more willing to work with them on things the debtor prefers to keep and not liquidate.
Additionally, a debtor should never try to avoid a financial issue when they are working with the bankruptcy trustee. Covering up assets or income is a bad idea, as the trustee will find out about them anyway. If there is a problem beneath the debtor and the bankruptcy trustee, the debtor can ask the attorneys on the case or the judge presiding to review the case to see if the trustee needs to be removed from the case and a new one appointed. Bankruptcy trustees that are good will belong to an organisation that is willing to share information on their past cases for the courts to review if needed. Because bankruptcy is public, privacy of information is not applicable.
Bankruptcy is something that most people do not plan on doing during their lives, but when it happens, a good, impartial bankruptcy trustee will make sure that the debtor and their creditors are treated fairly. Debtors should always abide by their decisions, and they will find themselves on their way to a new life that is debt free