Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Trustee in bankruptcy definition

What does Trustee in bankruptcy mean? A trustee in bankruptcy is the insolvency practitioner who takes control of a bankrupt individual’s estate, realises assets and distributes the proceeds to creditors. In England and Wales and in Northern Ireland, this is a statutory office under the insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989. The trustee is usually an authorised insolvency practitioner appointed by creditors, the Secretary of State/Department, or the court after a bankruptcy order; the Official Receiver may act until then. On appointment, the bankrupt’s estate vests in the trustee, who investigates affairs, recovers assets (including challenging transactions at an...

Trustee in Bankruptcy (England and Wales): Statutory Duties, Powers (IA 1986/IR 2016), Discretion and Oversight by Court, Creditors' Committee, Official Receiver and Professional Bodies

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Practice notes

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This Practice Note considers and sets out:

the responsibilities, remit and scope, obligations and authority of an Insolvency practitioner (IP) who has been formally appointed to act as Trustee in bankruptcy (trustee)
the safeguards in place to ensure the trustee performs their functions, obligations and duties as required by law

For further guidance on situations where the official receiver (OR) serves as trustee, please see Practice Note: Official receivers—personal insolvency.

The role and functions of a trustee

A trustee must hold a licence from a recognised professional body, be suitably qualified to act properly, and maintain at all times an adequate bond, which effectively operates as insurance for creditors.

Broadly, the trustee’s task is to collect and realise the assets in the Bankruptcy estate, and to review, determine and admit creditors’ claims.

Where the estate’s value allows, the trustee will declare a dividend to creditors, having first deducted the costs and expenses of the bankruptcy.

In doing so, the trustee must assess which assets form part of the estate and take control of them to enable their realisation...

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Web page updated on 21/05/2026

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