TIB

(19) Thus, under the Bankruptcy Act as it existed prior to enactment of the Bankruptcy Code, the trustee in bankruptcy held: Debtor's Property Rights and General Avoidance Powers, but also Creditor-Mirroring Avoidance Powers, and the distinct and more general Creditor-Mirroring Rights and Powers (collectively Historical Rights and Powers).

Creditors should remember that a trustee in bankruptcy acts as a court officer and owes a duty of care to both the creditors and the debtor.

Kisluk is a trustee in bankruptcy whose 24-year practice concentrates on financial restructuring for self-employed professionals and businesses.

After being notified, creditors must each file a claim with the trustee in bankruptcy indicating how much they are owed and whether the claim is secured or has priority over other claimants, based on an order of priority for unsecured claims established by the Bankruptcy Code.

The integrity of a foreclosure sale will be upheld, unless intervening factors are proven by the bankrupt, the trustee in bankruptcy and/or determined by the judge to prejudice the bankrupt by wilful acts or negligence of the mortgagee.

If no action is taken by the bankrupt individual, a Trustee in Bankruptcy will be appointed to collect and sell the individual's assets until bankruptcy debts and expenses have been met.

Under the new regime, anyone declared bankrupt will have to surrender control of most of his property and assets to the Official Receiver or trustee in bankruptcy.

An Interim Receiver is a Trustee in Bankruptcy appointed by the Court to generally safeguard the debtor's property without otherwise interfering with the debtor's business.