What is a bankrupty trustee?

If you’re struggling to repay your debts and you owe more than your belongings are worth, you might be able to file for bankruptcy.

When you go bankrupt, your assets – items of value you own – are usually sold off to pay off some of what you owe.

After 12 months, any remaining debt covered by your bankruptcy is wiped out. 

A bankruptcy trustee is an official receiver or insolvency practitioner appointed by the court.

A trustee is appointed to make sure the bankruptcy process is fair and legal. They’re also there to support you with advice and updates.

After the court approves your bankruptcy, the trustee steps in to manage your estate (your money, home and possessions). They’ll deal with your assets and your creditors.

Dealing with your assets

A trustee will see if any of your belongings can be sold to help pay off your debts, such as:

• property or land
• vehicles over the value of £3,250
• valuable items e.g. jewellery

They won’t take something of low value, such as a cheap car, and they aren’t allowed to take:

• essentials such as furniture and clothing
• items needed for work e.g. tools

People often think bankruptcy means they’ll lose everything, including their home, but that’s not always the case.

If your home isn’t sold within three years of you being declared bankrupt, you’ll usually get to keep it.

Check how bankruptcy affects your home.

Dealing with your creditors

Once a trustee has been appointed, they’ll take over all dealings with your creditors.

They’ll also split the money raised from selling any assets between your creditors.