The Role of a Trustee in Bankruptcy in Australia

May 16, 2012 by  Filed under: Bankruptcy 

When a person declares bankruptcy in Australia, their case is assigned to a registered bankruptcy trustee. A trustee is an agent of the courts and is primarily responsible for managing estates. In the case of bankruptcy, this refers to the estates of the bankruptcy applicant.

The bankruptcy trustee will investigate issues to do with the estate of the person filing for bankruptcy. As part of this process, they will learn what assets and liabilities the applicant has. They will also create records of their findings and establish trust accounts and financial records to deal with the estate.

There are important obligations that a Trustee has under the law when doing this.

The role of a trustee is defined and empowered by legislation in Australia, namely the Bankruptcy Act 1966. They therefore have legal obligations to perform in their day-to-day duties for both the bankrupt and their creditors. They are obliged to be diligent in their work practices and must be able to demonstrate that administrative duties are carried out diligently in accordance with the relevant legislation.

Trustees are appointed by the Inspector General and must pass a number of tests beforehand. These tests include demonstrating the necessary knowledge, experience, skills and abilities to carry out the tasks of the role in accordance with the law.

More specifically, this includes demonstrating the required level of commercial acumen (as they must operate a business), sufficient communication skills such as negotiation, arbitration, counseling and advocacy. There is also a requirement to act in a non-biased and ethical way and this must be demonstrated.

In many cases each applicant will need to undertake an examination.

All applicants must submit their applications to the Inspector General. The application is referred to a select committee, which includes the Inspector General, and it is this committee that will assess the merits of the applicant. They are the body that makes the final decision.

Where a Trustee is employed, they will need to prove that they can carry out their duties without influence of their boss. They must be able to operate independently. They cannot operate under the influence of their boss so they must be able to show that they are not influenced in their work with bankruptcy applicants.

It is clear that the role of Trustee in bankruptcy is an important one and carries much responsibility. The impact their role has on peoples lives can be quite significant and they must be able to operate with due diligence and professionalism.

Learn more about the role of a bankruptcy trustee at www.bankruptcy-australia.com.au

Article Source:
http://EzineArticles.com/?expert=Pete_Fick

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