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Inspectors – conflict of interest

In personal bankruptcy:
I know that there is a conflict of interest for inspectors with a proceeding against the bankrupt but …
Is there any conflict with relatives of the bankrupt being an inspector?
I ask because I am the creditor of a bankrupt whose brother has been appointed an inspector and he is not acting in the best interests of the creditors. His claim as a creditor is not arms-length and I don’t believe it.
Thank you

One Response to “Inspectors – conflict of interest”

A licensed trustee said...

The best place to have voiced these concerns would have been at the Meeting of Creditors when the inspector was appointed. There is nothing specifically in the Act that prevents a relative from serving as an inspector so I wouldn’t make that the focus of your concerns. You certainly have the right to focus on the inspector’s conduct.

To replace an inspector you require either a Meeting of Creditors or a Court Order (likely the Court would simply order another Meeting of Creditors). I would start by voicing my concerns to the trustee, if that doesn’t get you anywhere you might contact the Office of the Superintendent of Bankruptcy or hire a lawyer and head to Court…