What does the trustee do in a bankruptcy?
If your business goes bankrupt, a trustee (curator) will make decisions on behalf of your company. You can no longer access your assets. This article explains what a trustee is, what duties they perform, and what that means for you.
What is a trustee?
If a business goes bankrupt, the court will appoint a c trustee. This is usually an attorney or lawyer. The trustee must see to it that the bankruptcy is handled in the right way. And that creditors are repaid what they are owed as much as possible.
What does a trustee do?
If your business goes bankrupt, the trustee takes over its daily management and authorities. You can no longer make decisions that affect your business, and its assets are seized. The trustee:
- manages your assets
- makes a list of your possessions and debts
- protects your property (estate), so that nothing disappears
- sells your possessions to pay off your creditors (liquidation)
- investigates fraud or misconduct
- manages your administration, cash, and supplies
- receives and opens all your mail, including emails
- terminates contracts if necessary, such as rental contracts or employment contracts
- takes care of payments to creditors
- reports everything they do to the examining magistrate
The c trustee may also undo any actions you took prior to the bankruptcy declaration if this increases the likelihood of creditors receiving payment. For example, if you made a large payment to a particular customer at the last minute, the trustee may reclaim the money.
Private assets and bankruptcy
Sometimes your private assets, such as your home, household contents, or car, may also be seized. This usually depends on the legal structure of your business. Are you personally liable for debts with your private assets? And do you therefore have to pay your business debts with your private assets? The trustee will then determine how much money you have left each month for your basic needs.
Term of appointment of a trustee
In principle, the trustee is appointed for an indefinite period, for the duration of the bankruptcy. The bankruptcy may end, for example, due to:
- full payment of your debts
- dissolution of your business due to a lack of assets
- an agreement with your creditors
Who pays for the trustee’s services?
Payment for the trustee’s services comes from the money they are able to collect from the bankruptcy. Be it from selling supplies and estate, collecting payments from pending invoices (debtors), or other activities. The court determines the trustee’s wages.
Who appoints and supervises the trustee?
A magistrate appoints the trustee. They also appoint the examining magistrate. The examining magistrate supervises the trustee. If you are dissatisfied with the trustee’s work, you can file a complaint with the examining magistrate.