Assets discovered after the trustee’s discharge
Where a trustee discovers that the client had assets during the 48-month period after the date of sequestration, but they were unaware of it at the time and later is made aware of them, the trustee can be reappointed for the purpose of in-gathering the asset.
This must be done within five years of the date of sequestration, the asset must be of a value more than £1,000 and there must be a dividend to the creditor, or the asset will be returned to the client.
The process for discharged cases where an asset is discovered is as follows.
•Step 1: asset are identified and their value established.
•Step 2: review case for claims:
◦if there are any claims, the case is automatically sent for reopening;
◦if there are no claims, the trustee writes out giving them 21 days to submit a claim.
•Step 3:
◦if a claim is received, the case is reopened;
◦if no claims are received, case is not reopened.
To reopen there has to be a return to the creditor so, if no claims are in the case, there is no point in reopening it.