Who does a bankruptcy trustee really look after?
Section 19, of the Bankruptcy Act 1966 (Cth) titled “Duties etc. of trustee”. Subsection 19(1)(k) specifically mandates that the trustee must exercise their powers under the Act in a manner that maximizes the realization of the estate for the benefit of creditors (the people you owe money to). This duty is part of a broader set of legal obligations ensuring the trustee acts impartially and efficiently to optimize creditor recoveries.
If a Registered Bankruptcy Trustee has a responsibility to your creditors (people you owe money to), then how can they possibly have your best interest at heart? Be carefiul! Only use a Pre-insolvency advisor to assist you with your bankruptcy application.
At My Bankruptcy, we DO NOT AGREE that a Registered Bankruptcy Trustee should assist anyone with their bankruptcy application unless they disclose …. IN FULL … that they work for your creditors, NOT YOU! In fact, when a conflict of interest like this exists, a Trustee SHOULD NOT OFFER TO HELP YOU as it breaches many industry ethical standards.
FREE BANKRUPTCY! Is this really a thing?
FREE Bankruptcy through a registered trustee is certainly NOT a thing, but you will find many trustees advertise that “Your Bankruptcy Can Be Free.”
This is not the case. A trustee will always get their money. Here is how a bankruptcy may SEEM free through a Bankruptcy trustee:
The trustee will always ask you questions about your personal financial situation before they offer you a “Free” service.
But the service will not be free.
Once they have discovered you have any assets, money in your bank account, investments, houses, vehicles, caravans, boats, businesses or anything of value that will vest in them once you sign the bankruptcy paperwork, they may then offer you the service for free, knowing they can get the $10-15,000.00 that they usually charge by taking possession of your assets and selling them.
At My Bankruptcy, we DO NOT AGREE that a Registered Bankruptcy Trustee should mislead anyone by stating that their bankruptcy is FREE …. When in fact they will be charged between $10-15,000.00 by having all their assets sold.
Related businesses to trustees
Many Trustees are part of a larger organisation, or are linked to other businesses such as Debt Agreement administrators, law firms, loan companies etc. You may think you are appointing an independent firm to assist you with your bankruptcy, but in many cases you are not.
Be sure to ask ANYONE you speak with if they are part of a group that has Registered Trustees.
At My Bankruptcy, we ARE NOT Registered Bankruptcy Trustees and are not part of any other business that has Registered Trustees. We are completely independent, and we will ONLY work for you with your best interest at heart.
Always use a Pre-insolvency advisor to assist you with your Bankruptcy application.
