View source for Trustee in bankruptcy

{{Short description|Entity, often an individual, in charge of administering a bankruptcy estate}}
{{Insolvency}}
{{USBankruptcy}}
{{refimprove |date=May 2025}}
A '''trustee in bankruptcy''' is an entity, often an individual, in charge of administering a [[bankruptcy]] estate.

==Canada==
{{further|Bankruptcy in Canada}}

In Canada, a licensed insolvency trustee (LIT) is an individual or a corporation licensed by the official superintendent to hold in trust and, subsequently, to distribute a bankrupt's property among the creditors in accordance with the distribution scheme under the [[Bankruptcy and Insolvency Act]] (BIA). The bankrupt and all other persons holding bankrupt's property must transfer the property to trustee. The trustee may also assist individual in preparing and submitting a consumer proposal to creditors. The trustee must arrange mandatory counselling of the bankrupt. The trustee must follow the procedures under the BIA, call creditors meetings and send the parties required notices of proceedings and documents. The trustee is responsible for preparation of pre-discharge report and may oppose the bankrupt's discharge.

==Russia==
{{further|Insolvency law of Russia}}

To become registered as a trustee in bankruptcy ([[Russian language|Russian]]: арбитражный управляющий; [[transliteration]]: arbitrazhnyy upravlyayushchiy), one must:<ref>{{cite act|type=Federal Law|index=127-FZ|date=26 October 2002|legislature=[[State Duma]]|title=О несостоятельности (банкротстве)|language=ru|trans-title=About insolvency (bankruptcy)|url=http://www.pravo.gov.ru/proxy/ips/?searchres=&bpas=cd00000&a3=102000505&a3type=1&a3value=&a6=&a6type=1&a6value=&a15=&a15type=1&a15value=&a7type=1&a7from=&a7to=&a7date=26.10.2002&a8=127-%D4%C7&a8type=1&a1=&a0=&a16=&a16type=1&a16value=&a17=&a17type=1&a17value=&a4=&a4type=1&a4value=&a23=&a23type=1&a23value=&textpres=&sort=7&x=66&y=21}}</ref>
# to have a [[higher education]] degree,
# to have at least 1 year of an experience as a [[chief executive officer]],
# to complete the Single programme for the training of trustees in bankruptcy ([[Russian language|Russian]]: Единая программа подготовки арбитражных управляющих)<ref>{{cite act|type=Order|index=517|date=10 December 2009|legislature=[[Ministry of Economic Development (Russia)|Ministry of Economic Development of Russia]]|title=Об утверждении Единой программы подготовки арбитражных управляющих|language=ru|trans-title=On approving the Single programme for the training of trustees in bankruptcy|url=http://www.pravo.gov.ru/proxy/ips/?searchres=&bpas=cd00000&a3=102000497&a3type=1&a3value=&a6=&a6type=&a6value=&a15=&a15type=&a15value=&a7type=1&a7from=&a7to=&a7date=10.12.2009&a8=517&a8type=1&a1=&a0=&a16=&a16type=&a16value=&a17=&a17type=&a17value=&a4=&a4type=&a4value=&a23=&a23type=&a23value=&textpres=&sort=7&x=55&y=13}}</ref> and to pass a qualification exam,<ref>{{cite act|type=Decree|index=308|date=28 May 2003|legislature=[[Government of Russia]]|title=Об утверждении Правил проведения и сдачи теоретического экзамена по единой программе подготовки арбитражных управляющих|language=ru|trans-title=On approving the Rules for carrying out theory examination for the Single programme for the training of trustees in bankruptcy|url=http://www.pravo.gov.ru/proxy/ips/?searchres=&bpas=cd00000&a3=102000496&a3type=1&a3value=&a6=&a6type=&a6value=&a15=&a15type=&a15value=&a7type=1&a7from=&a7to=&a7date=28.05.2003&a8=308&a8type=1&a1=&a0=&a16=&a16type=&a16value=&a17=&a17type=&a17value=&a4=&a4type=&a4value=&a23=&a23type=&a23value=&textpres=&sort=7&x=56&y=14}}</ref>
# to get two-years traineeship as assistant of trustee in bankruptcy,
# to join to one of [[self-regulatory organization]]s of trustees in bankruptcy.

Person who has finished up all above-mentioned requirements is entered in the consolidated state registry of trustees in bankruptcy ([[Russian language|Russian]]: сводный государственный реестр арбитражных управляющих) which is maintained by [[Federal Service for State Registration, Cadastre and Cartography]].<ref>{{cite act|type=Order|index=238|date=18 April 2016|legislature=[[Ministry of Economic Development (Russia)|Ministry of Economic Development of Russia]]|title=Об утверждении Порядка ведения сводного государственного реестра арбитражных управляющих|language=ru|trans-title=On approving the Procedure for maintenance of the consolidated state registry of trustees in bankruptcy|url=http://www.pravo.gov.ru/proxy/ips/?searchres=&bpas=cd00000&a3=102000497&a3type=1&a3value=&a6=&a6type=1&a6value=&a15=&a15type=1&a15value=&a7type=1&a7from=&a7to=&a7date=18.04.2016&a8=238&a8type=1&a1=&a0=&a16=&a16type=1&a16value=&a17=&a17type=1&a17value=&a4=&a4type=1&a4value=&a23=&a23type=1&a23value=&textpres=&sort=7&x=55&y=18}}</ref>

Russian trustee in bankruptcy can be the member of only 1 [[self-regulatory organization]]s of trustees in bankruptcy. He can carry out other activities compatible with the position of trustee in bankruptcy, for example, be an individual entrepreneur or [[advocate]], but the status of individual entrepreneur and the status of advocate are incompatible with each other.

The term "арбитражный управляющий" ([[transliteration]]: arbitrazhnyy upravlyayushchiy) means [[Profession|job title]]. After entrance in particular insolvency (bankruptcy) case, trustee in bankruptcy is called using special term depending on particular insolvency (bankruptcy) proceeding in this case:

* interim officer ([[Russian language|Russian]]: временный управляющий; [[transliteration]]: vremennyy upravlyayushchiy) in monitoring procedure ([[Russian language|Russian]]: наблюдение; [[transliteration]]: nablyudeniye) in insolvency (bankruptcy) cases of [[legal person]]s,
* administrative officer ([[Russian language|Russian]]: административный управляющий; [[transliteration]]: administrativnyy upravlyayushchiy) in economic recovery procedure ([[Russian language|Russian]]: финансовое оздоровление; [[transliteration]]: finansovoe ozdorovleniye) in insolvency (bankruptcy) cases of [[legal person]]s,
* external manager ([[Russian language|Russian]]: внешний управляющий; [[transliteration]]: vneshnyy upravlyayushchiy) in external control procedure ([[Russian language|Russian]]: внешнее управление; [[transliteration]]: vneshneye upravleniye) in insolvency (bankruptcy) cases of [[legal person]]s,
* settlement officer ([[Russian language|Russian]]: конкурсный управляющий; [[transliteration]]: konkursnyy upravlyayushchiy) in liquidation procedure ([[Russian language|Russian]]: конкурсное производство; [[transliteration]]: konkursnoe proizvodstvo) in insolvency (bankruptcy) cases of [[legal person]]s,
* financial officer ([[Russian language|Russian]]: финансовый управляющий; [[transliteration]]: finansovyy upravlyayushchiy) in all procedures in insolvency (bankruptcy) cases of [[natural person]]s.

The Federal Law of 26 October 2002, No.127-FZ «About insolvency (bankruptcy)» provides that the function of settlement officer in liquidation procedure in insolvency (bankruptcy) cases of [[bank]]s, [[Insurance company|insurance companies]], [[pension funds]] and other [[financial institution]]s is carrying out by [[Deposit Insurance Agency of Russia]] (with some exceptions).<ref>{{cite news|last=Fedotova|first=Irina|date=12 August 2004|title=Вклады не горят|language=ru|work=[[Rossiyskaya Gazeta]]|url=https://rg.ru/2004/08/12/strah-vklady.html}}</ref>

== United States ==
{{Further|Bankruptcy in the United States}}
{{unref|section|date=May 2025}}
In the United States, a '''Trustee in Bankruptcy''' is a person who is appointed by the [[United States Trustee Program]], a division of the [[United States Department of Justice]]. In limited circumstances, the creditors involved in a bankruptcy case can elect a trustee.

In a [[Chapter 7, Title 11, United States Code|Chapter 7]] Bankruptcy ("Liquidation") the trustee gathers the debtor's non-exempt property, managing the funds from the sale of those assets, and then paying expenses and distributing the balance to the owed creditors.

In a [[Chapter 13]] Bankruptcy ("Reorganization") the trustee is responsible for receiving the debtor's monthly payments and distributing those funds proportionally to the debtor's creditors. The Bankruptcy Trustee will act on behalf of the debtor to guarantee that both the creditors’ and the debtor's interests are maintained in accordance with the bankruptcy laws, and will often be required to act as a negotiator between the two parties.

Since the 1990s, duties similar to those of a trustee are sometimes performed by an individual called a [[Chief restructuring officer]] (CRO), generally prior to, or subsequent to, a bankruptcy proceeding (generally, a Chapter 11 proceeding). A CRO is an official of the company who has direct contact with the creditors and who has executive power to implement changes. The advantage of using a CRO is that the arrangement gives both the creditor and debtor more say over the future of the company than might be the case where a Chapter 11 bankruptcy trustee is appointed.

== See also ==
*[[Receiver (legal)]]

==References==
{{Reflist}}

== External links ==

*[http://www.nabt.com/ National Association of Bankruptcy Trustees]
*[http://www.usdoj.gov/ust/ DOJ U.S. Trustee Program]

{{Authority control}}

[[Category:Legal professions]]
[[Category:United States bankruptcy law]]
[[Category:Insolvency]]

[[da:Kurator]]