How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Joshua Your Own Question
Joshua
Joshua, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 27770
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Bankruptcy Law Question Here...
Joshua is online now

I have a situation where I have debts say of 50k, and the

This answer was rated:

I have a situation where I have debts say of 50k, and the possibility of funds being recovered from a debtor of mine from another part of the EU of say 150k. As I am officially bankrupt I have the following questions : 1/ Would the trustee of my bankruptcy be entitled to receive all of the 150k or could I just provide him with the 50k he needs to pay off my creditors ?
2/ Do the fees of the trustee have to be deducted from the amount owing to my creditors or would the trustee just help himself to the excess monies which I have over the 50k ?
3/ I understand that the official receiver is also entitled to a figure of some £8750 - would this be paid by the trustee directly to the Official Receiver also from my funds over the 50k ?
4/ What would happen if I paid off the creditors myself or via my own lawyer - would that create a problem ?

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years experience.

  1. May I ask when you might realistically expect to be able to recover the funds please?
  2. Have you notified the trustee of the recovery action?
  3. When were you made bankrupt?
Customer: replied 13 days ago.
Hi Joshua
1/ It could be anytime over the next few months - or possibly not at all. It is all very uncertain and unclear
2/ Yes - he has even offered to help
3/ 11th September 2020

Thanks. If you are able to make a recovery that exceed the debts under your bankruptcy then you can apply to annul the bankruptcy which would remove all records of the same from public record. In terms of your questions, using the same numbering:

1) As you have been made bankrupt, strictly any recovered funds, and the right of the claim itself belongs to the trustee in bankruptcy so any payment should be made to him or handed over in full. The trustee may agree to a more flexible approach in practice. That said, any amount over and above what is owed to creditors and in fees would be returned to you - it is not lost.

2) Any fees would be deducted from your assets overall including the proceeds of any recovery I regret

3) All fees associated with the bankruptcy or annulment of bankruptcy would be deducted by the trustee prior to returning any unused funds, or demanded from you if you receive payment and did not hand over the whole amount.

4) All such payments should be made through the trustee. This is because once made bankrupt you lose title and right to deal with assets in favour of the trustee. In terms of problems, if there was more than enough to pay off all creditors and you did so yourself despite the above, the trustee would in all likelihood take a pragmatic view providing his fees are also paid. Problems can arise if there is insufficient money to pay all liabilities as in these circumstances monies must be paid in a particular order and proportion.

Joshua and 5 other Bankruptcy Law Specialists are ready to help you