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This guidance describes the general functions of Accountant in Bankruptcy, interim trustees, trustees and commissioners in relation to their responsibilities regarding bankruptcies which started on or after 30 November 2016.
15.1 Vesting of the estate - post discharge of the trustee
This section applies to estate that would have vested in the trustee at the date of bankruptcy which is not discovered until after the trustee has been discharged.
This would include an entitlement to funds, or property, which existed prior to or during the period of the bankruptcy which do not have a value lower than £1000.
There is nothing in the Act which states the role of the trustee, in principle, ceases on their discharge. Section 152(3) states The Accountant has the authority to reappoint a trustee on application of the trustee who was discharged or appoint a new trustee.
The discharged trustee, or an insolvency practitioner, should only consider seeking to be appointed, if this action is expected to bring a benefit to the debtor’s creditors. The request must be made before the expiry of five years from the date of bankruptcy.
If the action will not result in a dividend to creditors the funds/assets should revert back to the debtor.