Inspectors – conflict of interest

July 30th, 2007 by Questions

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…

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