4.2 How is the debtor's estate managed?
The trustee is responsible for the management and realisation of the debtor's estate. The trustee can sell the debtor's assets, continue trading or close down their business. They can initiate or continue legal proceedings if required. The trustee will write to insurance companies, banks, registrars, etc. about any policies, money, shares, etc. held in the debtor's name, and arrange for valuations and sale.
Property
The trustee will deal with the debtor's interest in any property. Before taking action on selling a property, the trustee will consider the amount of equity and the rights of other interested parties, such as secured creditors, co-owners and family members. The trustee will take into account the costs involved in selling and the overall financial benefit to the estate. If the trustee thinks that a course of action is particularly contentious, they may seek the creditors' views before undertaking it.
The debtor's bankruptcy does not affect the rights of a secured creditor and if the debtor does not maintain payments the secured creditor can still take action to repossess and sell the debtor's property. In these circumstances, any money left over after the costs of the sale and the debt is repaid will pass to the trustee.
The debtor is not allowed to sell or otherwise dispose of their interest in any property.
Contributions
The trustee will also consider what contribution the debtor is able to make from their income. They will enter into an agreement with the debtor which will normally last for three years from the date of the agreement. The agreement can be varied if the debtor's circumstances change.