The Trustee will prepare the necessary documents from the information submitted. Once the documents have been signed and filed with the Official Receiver, the business is legally bankrupt.
After the bankruptcy documents have been filed, if contacted by any creditors, inform them that the business is bankrupt and refer them to the Trustee.
Within seven days of the appointment, the Trustee will send written notice of the bankruptcy to all creditors. The notice will advise them of the date of the first meeting of creditors and will enclose a proof of claim form to be completed and returned to the Trustee. If the proof of claim form is not returned to the Trustee prior to the distribution of dividends, then the creditor will not be entitled to share in the distribution.
If required, you, as the person in charge of the business, may be examined under oath by the Official Receiver. The purpose of the examination is to obtain background information including the causes of the bankruptcy and the financial history of the company.
The first meeting of creditors, which you are legally required to attend, takes place 21 days after the bankruptcy filing. The purpose of this meeting is to allow interested creditors to obtain information pertaining to the bankruptcy and have input into the process. It is generally not a confrontational situation and is held at the office of the Official Receiver or at the Trustee's office.
Inspectors may be appointed at the first meeting. They are creditors who are nominated by the other creditors to assist the Trustee with the administration of the estate. They work on behalf of all creditors and ensure the best realization for the assets and the fair and equitable distribution of the proceeds.
The Act imposes certain duties on a bankrupt or on the officers of a bankrupt company
(generally someone in control of the company's finances). These duties are reasonable and are
based on common sense. The Trustee will provide the officer or the bankrupt with a copy of the
relevant sections of the Act describing his duties.
