One Response to “Filing bankruptcy and trustee of family estate”
Doug Stuive, CA | Trustee | CIRP said...
A bankrupt individual cannot be appointed as the trustee of a family estate while they are actually in the bankruptcy.
This period of time can range depending on several factors, but in general the length of a bankruptcy can be either 9 or 21 months for a first time bankruptcy, and 24 or 36 months for a second time bankruptcy. During that time period the consumer is considered to be in bankruptcy and cannot act as trustee.
At the end of this time period, most bankrupt individuals will have completed the necessary steps to obtain a discharge certificate. This document releases them from their debts and signals the end of the bankruptcy period. While the bankruptcy will be listed on the bankrupt’s credit bureau reports for some time, they are no longer considered “bankrupt”.
After receiving their discharge from bankruptcy a person is free to act as trustee of a family estate.
A bankrupt individual cannot be appointed as the trustee of a family estate while they are actually in the bankruptcy.
This period of time can range depending on several factors, but in general the length of a bankruptcy can be either 9 or 21 months for a first time bankruptcy, and 24 or 36 months for a second time bankruptcy. During that time period the consumer is considered to be in bankruptcy and cannot act as trustee.
At the end of this time period, most bankrupt individuals will have completed the necessary steps to obtain a discharge certificate. This document releases them from their debts and signals the end of the bankruptcy period. While the bankruptcy will be listed on the bankrupt’s credit bureau reports for some time, they are no longer considered “bankrupt”.
After receiving their discharge from bankruptcy a person is free to act as trustee of a family estate.