The task of the bankruptcy trustee is set out in article 68 paragraph 1 FW: "The liquidator is in charge of the administration and liquidation of the bankruptcy estate." According to paragraph 2 of this article, the bankruptcy trustee does so under the supervision of a supervisory judge. The bankruptcy trustee performs his duties primarily for the benefit of the joint creditors. However, the bankruptcy trustee also has interests of a social nature to consider in his policy decisions, such as continuity of the company and preservation of employment.
administration
The consequence of bankruptcy is that the debtor immediately loses the control and disposal of his assets. These powers fall to the receiver. The trustee's administration task - and the associated powers - consist of the following components:
- bringing together the assets belonging to the estate, whether or not by 'reconstructing' them by recovering assets withdrawn from the estate or bringing a claim under directors' liability;
- preserving the assets belonging to the estate (article 92 FW);
- describing and valuing the items belonging to the estate (article 94 FW);
- preparing a statement of income and debts, showing their nature and amount (article 96 FW).
liquidation
The bankruptcy trustee will have to monetise the estate assets so that the proceeds can be distributed to the creditors.
In a judgment dated April, 24 2020, the Hoge Raad ruled on the question whether it is part of the bankruptcy trustee's task to realise all assets of the estate or whether the administration and liquidation task of the bankruptcy trustee ends if and when the bankruptcy trustee has realised sufficient proceeds to satisfy creditors. The latter is the case:
“The rationale behind this provision is that when the bankruptcy trustee has realised sufficient proceeds to satisfy (after payment of the estate costs), the verified claims, the purpose of the bankruptcy has been achieved. Thus, once the verified creditors are satisfied, the bankruptcy and thus the administration and liquidation task of the bankruptcy trustee ends.”