If you go or are taken to court because you are unable to pay your debts, the court may declare you bankrupt. Being bankrupt means that you are too ‘broke’ to pay your debts but also that you cannot act freely like any other person in terms of handling money or property.
For this reason, the court will appoint a person to immediately take over the management and the job of looking after your property and financial affairs (called an official receiver). This is a temporary role but is still particularly important when a person has been declared bankrupt.
If such a person is appointed, they will be required to carry out the following duties:
1. To receive the list of all properties of the bankrupt person (including bank accounts, shares, other non-physical properties)
2. To inform the public that the court has made a bankruptcy order. (This is the court order declaring that a person is unable to pay their debts and should be relieved of the right to handle their financial affairs).
3. To call and chair the meeting of all Creditors (the people who you have failed to repay) within 14 working days after the court order is made.
4. To make a report to the court about the meeting and also give the court a list of all the creditors, and who has been appointed as trustee (the person whom the creditors appoint to take over the duties of the official receiver to take over the financial affairs of the bankrupt person.
Once the trustee is appointed (if the official reciever is not named as a trustee) then the duties of this person are done.
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