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 deb ...

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 The ''Bankruptcy and Insolvency Act'' (BIA; ) is one of the statutes that regulates the law on bankruptcy and insolvency in Canada. It governs bankruptcies, consumer and commercial proposals, and receiverships in Canada. It also governs the Off ...

(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 → and → the digraph , Cyrillic → , Armenian → or L ...

: arbitrazhnyy upravlyayushchiy), one must: # to have a

higher education Tertiary education (higher education, or post-secondary education) is the educational level following the completion of secondary education. The World Bank defines tertiary education as including universities, colleges, and vocational schools ...

degree, # to have at least 1 year of an experience as a

chief executive officer A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...

, # 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 Self-regulation may refer to: *Emotional self-regulation *Self-control, in sociology/psychology *Self-regulated learning, in educational psychology *Self-regulation theory (SRT), a system of conscious personal management *Industry self-regulation, ...

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

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. List of country legal systems, Different countries and legal systems use the term with somewhat differing meanings. The broad equivalent in many English law–based jurisdictions could be a ba ...

, but the status of individual entrepreneur and the status of advocate are incompatible with each other. The term "арбитражный управляющий" (

: arbitrazhnyy upravlyayushchiy) means job title. 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;

: vremennyy upravlyayushchiy) in monitoring procedure ( Russian: наблюдение;

: nablyudeniye) in insolvency (bankruptcy) cases of

legal person In law, a legal person is any person or legal entity that can do the things a human person is usually able to do in law – such as enter into contracts, lawsuit, sue and be sued, ownership, own property, and so on. The reason for the term "''le ...

s, * administrative officer ( Russian: административный управляющий;

: administrativnyy upravlyayushchiy) in economic recovery procedure ( Russian: финансовое оздоровление;

: finansovoe ozdorovleniye) in insolvency (bankruptcy) cases of

s, * external manager ( Russian: внешний управляющий;

: vneshnyy upravlyayushchiy) in external control procedure ( Russian: внешнее управление;

: vneshneye upravleniye) in insolvency (bankruptcy) cases of

s, * settlement officer ( Russian: конкурсный управляющий;

: konkursnyy upravlyayushchiy) in liquidation procedure ( Russian: конкурсное производство;

: konkursnoe proizvodstvo) in insolvency (bankruptcy) cases of

s, * financial officer ( Russian: финансовый управляющий;

: 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, No.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 Deposit account, 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 m ...

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 protect ...

pension funds A pension fund, also known as a superannuation fund in some countries, is any program, fund, or scheme which provides retirement income. The U.S. Government's Social Security Trust Fund, which oversees $2.57 trillion in assets, is the world' ...

and other

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

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 The United States Trustee Program is a component of the United States Department of Justice that is responsible for overseeing the administration of bankruptcy cases and private trustees. The applicable federal law is found at and , et seq. I ...

, a division of the

United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...

. In limited circumstances, the creditors involved in a bankruptcy case can elect a trustee. In a

Chapter 7 Chapter Seven refers to a seventh Chapter (books), chapter in a book. Chapter Seven, Chapter 7, or Chapter VII may also refer to: Albums * Chapter Seven (album), ''Chapter Seven'' (album), a 2013 album by Damien Leith. * Chapter VII (album), ''Ch ...

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 Title 11 of the United States Code sets forth the statutes governing the various types of relief for bankruptcy in the United States. Chapter 13 of the United States Bankruptcy Code provides an individual with the opportunity to propose a plan ...

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.

References

External links

National Association of Bankruptcy TrusteesDOJ U.S. Trustee Program
{{Authority control Legal professions United States bankruptcy law Insolvency da:Kurator

Canada

Russia

United States

See also

References

External links