Q&As

What steps does a trustee in bankruptcy need to take if he wants to realise his interest in a property?

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Published on LexisPSL on 25/05/2017

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • What steps does a trustee in bankruptcy need to take if he wants to realise his interest in a property?

What steps does a trustee in bankruptcy need to take if he wants to realise his interest in a property?

In general terms, all property (as so broadly defined) belonging to or vested in the bankrupt at the commencement of the bankruptcy forms part of the bankruptcy estate and will vest automatically in the trustee in bankruptcy (trustee) immediately upon their appointment. Any interest in real property held by the bankrupt at the date the bankruptcy commences will vest in the trustee. This would include the legal title and the right to be registered as the legal proprietor where the bankrupt is the sole owner. See Practice Note: What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take?

The Practice Note: Property that vests in the trustee in bankruptcy on bankruptcy and how the trustee in bankruptcy ascertains the extent of their interest in it outlines the actions that need to be undertaken by the trustee in bankruptcy in order to realise the value of the assets. The assets that will vest in the trustee are the assets which belong to the bankruptcy estate. These will include all assets where the bankrupt had a legal or beneficial interest at the time the bankruptcy order was made. It is important to distinguish between the legal

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