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Trustee in bankruptcy's progress reports

Insolvency (Amendment) Rules 2010

The Insolvency (Amendment) Rules came into force on 6 April 2010.

Annual Progress Report

A trustee in bankruptcy must send out to creditors within 2 months of the annual anniversary of his appointment and every subsequent annual anniversary, an Annual Progress Report (Rule 6.78A).

By way of a summary, the Annual Progress Report must include details of:

 

1.

The trustee, the bankrupt and the bankruptcy proceedings.

 

2.

The basis fixed for the trustee's remuneration along with a statement of the remuneration charged and expenses incurred during the period of the report whether or not payment was made.

 

3.

Progress during the report period including a receipts and payments account.


4.

Any unrealised assets.


5.

A statement outlining creditors' right to request information and challenge remuneration and expenses.


6.

Any other information relevant to creditors.

Requirements when closing a bankrupty estate 

When closing a bankruptcy, the trustee must call a final meeting in accordance with Rule 6.137. The trustee must decide whether a dividend will be declared or not and send the appropriate notice. At least 8 weeks before the final meeting, the trustee must send a draft final progress report to creditors and the bankrupt (Rule 6.78B). This will be in the format of the final report that the trustee shall lay before the final meeting.

Creditor requests for further information

Within 21 days of receiving an annual progress report or draft final report (or within 7 days if the trustee is resigning), a secured creditor or an unsecured creditor with the concurrence of at least 5% in value of the unsecured creditors or any unsecured creditor with the permission of the Court, can request that the trustee provide additional information in relation to remuneration and expenses (Rule 6.78C).

The trustee must either provide all of this information within 14 days of the request or provide as much information as possible and explain why the remainder has not been provided with reference to proportionality, prejudice to the conduct of the estate or confidentiality.

Any creditor, not necessarily the same creditor who made the request in the first place, may thereafter apply to Court and the Court can make any Order it thinks just.

Maz Rahmati
0845 209 1592
maz.rahmati@clarkewillmott.com


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