Role, powers, functions and duties of a trustee in bankruptcy

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Published by a LexisNexis Restructuring & Insolvency expert
Practice notes

Role, powers, functions and duties of a trustee in bankruptcy

Copyright © 2025 LexisNexis

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes
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This Practice Note is drafted on the basis that an insolvency practitioner (IP) has been appointed as trustee in bankruptcy (trustee). It does not consider the official receiver's (OR) position when acting as trustee.

The role and functions of a trustee

A trustee must be licensed by a recognised professional body, qualified to act and have a sufficient bond in place, which is in effect an insurance policy for creditors.

The general function and role of the trustee is to get in and realise assets of the bankruptcy estate, and review, adjudicate and agree creditors' claims. If the value of the bankruptcy estate permits, the trustee will pay a dividend to creditors after having first deducted a sum to cover the expenses of the bankruptcy.

As part of this process, the trustee will need to consider what assets belong to the bankruptcy estate and secure them so that they can be realised. For further reading on the steps they should take, see Practice Note: Protecting a trustee in bankruptcy's interest

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Trustee in bankruptcy definition
What does Trustee in bankruptcy mean?

The insolvency practitioner who is charged with the realisation of the assets of a bankrupt for the benefit of such bankrupt's creditors.

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