A trustee in bankruptcy is an entity, often an individual, in charge of administering a
bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debto ...
estate.
Canada
In Canada, a licensed insolvency trustee (LIT) is an individual or a corporation licensed by the official superintendent to hold in trust and, subsequently, to distribute a bankrupt's property among the creditors in accordance with the distribution scheme under the
Bankruptcy and Insolvency Act (BIA). The bankrupt and all other persons holding bankrupt's property must transfer the property to trustee. The trustee may also assist individual in preparing and submitting a consumer proposal to creditors. The trustee must arrange mandatory counselling of the bankrupt. The trustee must follow the procedures under the BIA, call creditors meetings and send the parties required notices of proceedings and documents. The trustee is responsible for preparation of pre-discharge report and may oppose the bankrupt's discharge.
Russia
To become registered as a trustee in bankruptcy (
Russian: арбитражный управляющий;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: arbitrazhnyy upravlyayushchiy), one must:
# to have a
higher education
Higher education is tertiary education leading to award of an academic degree. Higher education, also called post-secondary education, third-level or tertiary education, is an optional final stage of formal learning that occurs after complet ...
degree,
# to have not less than 1 year of an experience as a
chief executive officer
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especial ...
,
# to complete the Single programme for the training of trustees in bankruptcy (
Russian: Единая программа подготовки арбитражных управляющих) and to pass a qualification exam,
# to get two-years traineeship as assistant of trustee in bankruptcy,
# to join to one of
self-regulatory organization
A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could exist in place of government regulation, or applied in addition to governmen ...
s of trustees in bankruptcy.
Person who has finished up all above-mentioned requirements is entered in the consolidated state registry of trustees in bankruptcy (
Russian: сводный государственный реестр арбитражных управляющих) which is maintained by
Federal Service for State Registration, Cadastre and Cartography.
Russian trustee in bankruptcy can be the member of only 1
self-regulatory organization
A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. The regulatory authority could exist in place of government regulation, or applied in addition to governmen ...
s of trustees in bankruptcy. He can carry out other activities compatible with the position of trustee in bankruptcy, for example, be an individual entrepreneur or
advocate
An advocate is a professional in the field of law. Different countries' legal systems use the term with somewhat differing meanings. The broad equivalent in many English law–based jurisdictions could be a barrister or a solicitor. However, ...
(but it must be remembered that the status of individual entrepreneur and the status of advocate are incompatible with each other).
The term "арбитражный управляющий" (
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: arbitrazhnyy upravlyayushchiy) means
job title
The International Standard Classification of Occupations (ISCO) is an International Labour Organization (ILO) classification structure for organizing information on labour and jobs. It is part of the international family of economic and social ...
. After entrance in particular insolvency (bankruptcy) case, trustee in bankruptcy is called using special term depending on particular insolvency (bankruptcy) proceeding in this case:
* interim officer (
Russian: временный управляющий;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: vremennyy upravlyayushchiy) in monitoring procedure (
Russian: наблюдение;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: nablyudeniye) in insolvency (bankruptcy) cases of
legal person
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
s,
* administrative officer (
Russian: административный управляющий;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: administrativnyy upravlyayushchiy) in economic recovery procedure (
Russian: финансовое оздоровление;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: finansovoe ozdorovleniye) in insolvency (bankruptcy) cases of
legal person
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
s,
* external manager (
Russian: внешний управляющий;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: vneshnyy upravlyayushchiy) in external control procedure (
Russian: внешнее управление;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: vneshneye upravleniye) in insolvency (bankruptcy) cases of
legal person
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
s,
* settlement officer (
Russian: конкурсный управляющий;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: konkursnyy upravlyayushchiy) in liquidation procedure (
Russian: конкурсное производство;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: konkursnoe proizvodstvo) in insolvency (bankruptcy) cases of
legal person
In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, sue and be sued, own property, and so on. The reason for ...
s,
* financial officer (
Russian: финансовый управляющий;
transliteration
Transliteration is a type of conversion of a text from one script to another that involves swapping letters (thus '' trans-'' + '' liter-'') in predictable ways, such as Greek → , Cyrillic → , Greek → the digraph , Armenian → or ...
: finansovyy upravlyayushchiy) in all procedures in insolvency (bankruptcy) cases of
natural person
In jurisprudence, a natural person (also physical person in some Commonwealth countries, or natural entity) is a person (in legal meaning, i.e., one who has its own legal personality) that is an individual human being, distinguished from the br ...
s.
The Federal Law of 26 October 2002, №127-FZ «About insolvency (bankruptcy)» provides that the function of settlement officer in liquidation procedure in insolvency (bankruptcy) cases of
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Becau ...
s,
insurance companies
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
,
pension funds and other
financial institution
Financial institutions, sometimes called banking institutions, are business entities that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial inst ...
s is carrying out by
Deposit Insurance Agency of Russia (with some exceptions).
United States
In the United States, a Trustee in Bankruptcy is a person who is appointed by the
United States Trustee Program, a division of the
United States Department of Justice
The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...
. In limited circumstances, the creditors involved in a bankruptcy case can elect a trustee.
In a
Chapter 7 Bankruptcy ("Liquidation") the trustee gathers the debtor's non-exempt property, managing the funds from the sale of those assets, and then paying expenses and distributing the balance to the owed creditors.
In a
Chapter 13 Bankruptcy ("Reorganization") the trustee is responsible for receiving the debtor's monthly payments and distributing those funds proportionally to the debtor's creditors. The Bankruptcy Trustee will act on behalf of the debtor to guarantee that both the creditors’ and the debtor's interests are maintained in accordance with the bankruptcy laws, and will often be required to act as a negotiator between the two parties.
Since the 1990s, duties similar to those of a trustee are sometimes performed by an individual called a
Chief restructuring officer (CRO), generally prior to, or subsequent to, a bankruptcy proceeding (generally, a Chapter 11 proceeding). A CRO is an official of the company who has direct contact with the creditors and who has executive power to implement changes. The advantage of using a CRO is that the arrangement gives both the creditor and debtor more say over the future of the company than might be the case where a Chapter 11 bankruptcy trustee is appointed.
See also
*
Receiver (legal)
References
External links
National Association of Bankruptcy TrusteesDOJ U.S. Trustee Program
Legal professions
United States bankruptcy law
Insolvency
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