Trustee in bankruptcy
A person who is an officer of a bankruptcy court and who is given power to take possession of a bankrupt’s property to hold onto it in trust for the creditors. A trustee in bankruptcy will be appointed to a bankrupt by the Australian Financial Security Authority (AFSA).
A trustee in bankruptcy will be given almost complete control over the majority of a bankrupt’s assets, such as a house and car (with some exceptions, such as household goods) in order to manage the sale and distribution of those assets to settle the bankrupt’s debts. The trustee in bankruptcy will accord with bankruptcy law in the management of the property, and will pay off creditors in order of priority (secured creditors first).
Additional reading:
The Complete Guide to Trading Trusts for small and medium-sized business