Insolvency Made Clear: A Guide for Debtors

Effect Of Bankruptcy
2.16 Investigations by the Trustee in Bankruptcy
A few days after the making of a bankruptcy order, the Insolvency Service will
contact the bankrupt to organise an interview with their Trustee in Bankruptcy.
From the bankrupt’s perspective, all the details of the bankruptcy are sorted out
by the Trustee in Bankruptcy. Most of a Trustee’s time is spent understanding
the assets and liabilities of the estate. They have powers under the Act which
help them to do this.
2.16.1 Investigation powers
The bankrupt is under a duty to cooperate with the Trustee in Bankruptcy
under s333 of the Act. This includes giving information to the Trustee about his
affairs, meeting the Trustee in person (‘attend on the Trustee’), and “do all such
things as the Trustee may for the purpose of carrying out his functions reasonably
require”. This includes giving information about property acquired while still an
undischarged bankrupt even after the bankruptcy has been discharged. Failure
to cooperate with the Trustee without a reasonable excuse is contempt of court.
At first, the Trustee will speak to the bankrupt informally, perhaps at the debtor’s
home or at the office of the Trustee. If the Trustee is the Official Receiver (the
‘OR’), they will usually require the bankrupt to fill in a ‘Bankruptcy Preliminary
Information Questionnaire’ prior to the face to face interview. A copy of this
form can be found at https://www.nationalbailiffadvice.uk/img/PIQB.pdf. If the
interviewee is unable to complete the questionnaire, for example, because they
are unable to read, the Official Receiver will ensure that the form is read to them.
The Trustee will ask the bankrupt to set out all the property they are aware of,
all their debts and the details of all major transactions undergone in the last few
years. This will not be done under oath, but it remains a criminal offence to conceal
property or to lie to the Trustee in Bankruptcy: see the full list of offences
in Chapter 7. Without giving the full list of offences, it is generally the case that
any scheme which the bankrupt may think of in order to avoid paying creditors
(admitting a false debt; concealing information; transferring property away in
advance of bankruptcy; etc.) is a criminal offence.
If the Trustee does not think this response is adequate, they can apply for a
public or private examination of the bankrupt. This is a formal hearing where
the Trustee will ask the bankrupt questions under oath. It is substantially easier
for the bankrupt and the Trustee not to use the examination process. In practice,
it is only likely to happen when the Trustee suspects that the bankrupt is hiding
something important.
The court has discretion about whether or not to make the order for examination.
However, unless it is wholly unreasonable, unnecessary or oppressive the
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