What does the curator do in a bankruptcy?
If your business goes bankrupt, a curator will take decisions on behalf of your company. You can no longer access your assets. This article explains what a curator is, what duties they perform and what that means for you.
What is a curator?
If a business goes bankrupt, the court will appoint the curator (also referred to as the receiver, liquidator, trustee or administrator). This is usually an attorney or lawyer. The curator 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 curator do?
If your business goes bankrupt, the curator takes over its daily management and authorities. You can no longer make decisions that affect your business, and its assets are impounded. The curator:
- 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 malconduct;
- 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;
- is able to undo actions that you took prior to the bankruptcy, if it means more creditors can be paid off. For instance, if you rushed through a large payment to one creditor, the curator can reclaim the money;
- reports everything they do to the examining magistrate.
Private assets and bankruptcy
Depending on your legal business structure, your private possessions are also impounded, for instance your house, furniture or car. If you are personally liable for your company debts, the curator will determine a monthly allowance for you to provide in your basic needs.
Who pays for the curator’s services?
Payment for the curator’s services comes from the money he is 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 curator’s wages.
Who appoints and supervises the curator?
A magistrate appoints the curator. He also appoints the examining magistrate. The examining magistrate supervises the curator. If you are dissatisfied about the curator’s work, you can file a complaint with the examining magistrate.