Trustee in bankruptcy powers

[marksmiles]

I understand that a Trustee in bankruptcy enjoys extensive powers, certainly extending to historical bank records and statements.

 

Do the Trustee in bankruptcy powers extend to demanding historical bank records / statements of a spouse ( independent account, not a joint account )?

 

In practice might a a Trustee in bankruptcy also review the historical spending of credit card accounts? Or would the Trustee in bankruptcy more likely accept the debt figure claimed by the credit card company without further review?

[gizmo111]

I understand that a Trustee in bankruptcy enjoys extensive powers, certainly extending to historical bank records and statements.

 

Do the Trustee in bankruptcy powers extend to demanding historical bank records / statements of a spouse ( independent account, not a joint account )?

 

If they suspect you have been concealing assets in a spouses accounts then yes they can.

In practice might a a Trustee in bankruptcy also review the historical spending of credit card accounts? Or would the Trustee in bankruptcy more likely accept the debt figure claimed by the credit card company without further review?

 

They won't dispute the figure but can still look through the accounts to see if your spending has been reckless and possibly the cause of your current situation,

 

Is it something specific you are being investigated on?

[marksmiles]

No I am not being investigated ( at least not yet ) I jut want to get a better feel for 'a very new world'.

 

Reckless spending aside, it seems to me that there might be instances where a person might have made a credit card transfer in favour of a third party - possibly a family associate - so the debt ended up on the bankrupt's credit card, and I wonder whether or not that might be likely to be picked up by a trustee, and therefore potentially vulnerable to a trustee claim.

[gizmo111]

No I am not being investigated ( at least not yet ) I jut want to get a better feel for 'a very new world'.

 

Reckless spending aside, it seems to me that there might be instances where a person might have made a credit card transfer in favour of a third party - possibly a family associate - so the debt ended up on the bankrupt's credit card, and I wonder whether or not that might be likely to be picked up by a trustee, and therefore potentially vulnerable to a trustee claim.

 

It would all depend on the size, age and nature of the transfer - £5K on what was probably a joint household debt 2 years ago, would be treated very differently to £10K, a few days or weeks before you went BR.

[marksmiles]

It would all depend on the size, age and nature of the transfer - £5K on what was probably a joint household debt 2 years ago, would be treated very differently to £10K, a few days or weeks before you went BR.

 

Yes that's a good answer.

What about the chances of it falling fro review, or is this impossible to say?

[gizmo111]

Impossible to say, but generally speaking the OR will go through all your accounts with a fine toothcomb - I've known relatively small transactions of less than £50 be questioned, and large ones for holidays of £3K to be ignored. Luck of the draw of the OR really.

[marksmiles]

Luck of the draw of the OR really.

 

For OR I am substituting 'Trustee in bankruptcy' unless I have that wrong.

 

Can it be equally noted : Luck of the draw of the Trustee in bankruptcy? Can one have any influence on this? I understand that it is in the power of a disgruntled creditor to fund a ( hard ) Trustee in bankruptcy. Is it equally in the power of ( friendly ) creditors to fund an ( easier ) Trustee in bankruptcy?

 

Does the power of influence of a disgruntled creditor extend only to funding, or might they also appoint a preferred Trustee in bankruptcy?

[marksmiles]

Do the Trustee in bankruptcy powers extend to demanding historical bank records / statements of a spouse ( independent account, not a joint account )?

 

"If they suspect you have been concealing assets in a spouses accounts then yes they can."

 

In order to make a demand for a spouses account records is it enough for them to have a 'suspicion' or would it be necessary for them to see a link or a paper trail - such as a direct transfer?

 

Clearly just because a partner has assets, they are not necessarily the fruits of an exercise of concealment. With whom would the burden of proof lie to establish they were / were not the result of illicit transfers?

 

If there were any concerns ( of the bankrupt ) might there be some advantage in separation / divorce prior to bankruptcy?

[toddle2u]

"If they suspect you have been concealing assets in a spouses accounts then yes they can."

 

I don't think this is true. It is my experience that they cannot look at a spouses bank account if it is not joint

[debtinfo]

hi, The trustee is usually the Official Receiver in most cases, only where you have significant assets is an external trustee likely to be appointed, although the majority of creditors can ask for an external trustee at any time. The trustee deals with assets only, the Official Receiver deals with the conduct of the bankrupt.

 

In theory the OR can privatly examine in court any person who appears to have information pertaining to the affairs of the bankrupt

[marksmiles]

I don't think this is true. It is my experience that they cannot look at a spouses bank account if it is not joint

 

Obviously this might be a more appealing answer, and in some ways seems more logical to me if the legal basis is that all persons are independent entities.

I would have thought such a power would be vested by specific legislation, or regulations.

 

Now we have two conflicting viewpoints in this thread.

 

How might I find out for certainty? Is there any guidebook like a trustee in bankruptcy handbook?

 

( And is there any guidebook covering early mover strategies for a potential bankrupt? )

[out of cash]

Hi there,

 

what exactly are your worrys,if its a transfer of an assett before going br the OR can have this reversed going back 5 yrs,they usually investigate the bankrupts statements between 2 to 5yrs if they see any what they deem to be unreasonable behaviour they can go back longer,if gambling has been involved,casinos,internet,horses,stocks and shares,they can apply a bankruptcy restictions order which will tie you into the terms of the br for anywhere betweeen 1-15yrs hope some of this helps.

[debtinfo]

hi as i said they can get hold of the statements but if she refused they would need a court order, whether that would be granted depends on the personal circumstances

[marksmiles]

hi as i said they can get hold of the statements but if she refused they would need a court order, whether that would be granted depends on the personal circumstances

 

Now that's got me thinking - I wonder what the sort of personal circumstances might be for a court to grant such an order. It sounds like a lot of potential trouble and cost.

[debtinfo]

yes it is, and has been said above it would depend on how important the OR thinks the information is

[goldsmith333]

Hi

Wonder if anybody on this forum can help my friend, approx 3 years ago they had double glazing fitted to their property. which was a shambles they refused to pay and got made bankrupt by firms solicitor, glazing was £6000 which was paid into court but sol fees etc were £2800 which they didnt have ,it was then passed over to trustees who have now made the debt £54000?, as a result of this they are taking my friends house with approx £70000 equity off them , does anybody on here know how this debt can esculate to that ammount legaly , they are on the point of a nervous breakdown?.

Any advise would be app, they have tried various routes cit advise ,local sol, but they are on min wage and only 30 hours per week, council want to use gov scheme to buy and rent property back to them ...

[marksmiles]

Hi

Wonder if anybody on this forum can help my friend, approx 3 years ago they had double glazing fitted to their property. which was a shambles they refused to pay and got made bankrupt by firms solicitor, glazing was £6000 which was paid into court but sol fees etc were £2800 which they didnt have ,it was then passed over to trustees who have now made the debt £54000?, as a result of this they are taking my friends house with approx £70000 equity off them , does anybody on here know how this debt can esculate to that ammount legaly , they are on the point of a nervous breakdown?.

Any advise would be app, they have tried various routes cit advise ,local sol, but they are on min wage and only 30 hours per week, council want to use gov scheme to buy and rent property back to them ...

 

( I am not sure how things work here but I wonder if the administrator could carve this as a separate post?? )

[goldsmith333]

Hope someone can help on this?.

[debtinfo]

are you sure it is just this debt, in bankruptcy you have to include all debts, it would be unlikely that the fees would rise to £54,000

[goldsmith333]

Sorry but this isnt all debts , just trustees fees over 2 years?, they are pushing to get house only because my friend owns their house and works? has been told if they didnt own house this would have been written off, sad indicment this work and buy your home and this is what happens.

[debtinfo]

deffinitly ask for a breakdown of the fees then

[goldsmith333]

already has a breakdown , and its mostly trustee charges £9000 1st year and£16000 2nd year for a couple of letters? .

[frettful38]

Hi

Wonder if anybody on this forum can help my friend, approx 3 years ago they had double glazing fitted to their property. which was a shambles they refused to pay and got made bankrupt by firms solicitor, glazing was £6000 which was paid into court but sol fees etc were £2800 which they didnt have ,it was then passed over to trustees who have now made the debt £54000?, as a result of this they are taking my friends house with approx £70000 equity off them , does anybody on here know how this debt can esculate to that ammount legaly , they are on the point of a nervous breakdown?.

Any advise would be app, they have tried various routes cit advise ,local sol, but they are on min wage and only 30 hours per week, council want to use gov scheme to buy and rent property back to them ...

 

Sorry to hear about your friends situation. I can fully understand what they must be going through as I too went through something similar. Unfortunately there is not a lot of help around regarding Trustee in Bankruptcy and if there is I never found it. This is all a [problem] and one of the reasons why this country is where it is today.

From a 6k debt to rise to 70k is nothing but disgusting and makes my blood boil as this has bought back very bitter memories of my own. Here is a link which I hope will be helpful for your friend.

 

Bankruptcy Help: Bankruptcy Help Forum, articles, blogs, TV channel ...

[debtinfo]

Thats £31,000, what about the other £23,000, surely he would have been better paying the debt at thestart