After a bankruptcy declaration on limited-liability trust property, who must give an explanation about the bankruptcy, and on whose request?
General information · Not legal advice
Material to check
In a practice file we read the bankruptcy declaration ruling and the trust contract or property records showing that the assets are limited-liability trust property, since the duty follows only that kind of declaration; we also check any request made by the bankruptcy administrator, an auditor or the creditors' meeting, and the record of the explanation given.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
One reading states the duty as the provision sets it: once a bankruptcy declaration has been made on limited-liability trust property, a person within the items of the referenced provision must, on a request by the bankruptcy administrator, an auditor or the creditors' meeting, give the explanation needed concerning the bankruptcy; the provision on that basis extends the same duty to a person who formerly held that capacity.
Another reading notes what the provision does not supply: the persons themselves are identified by a cross-reference to another provision, and the provision neither defines how detailed the necessary explanation must be nor states what follows if the person does not comply with the request.
Your judgment
If a request is made and ignored, what in the papers could show which explanation the bankruptcy actually required?
PRO SE does not make this decision or keep a case record on this public site.When to reconsider
We look at this again if the provision is amended to name other requesters or to require a written statement, or if a court decision sets how detailed the necessary explanation must be or what follows a refusal.