When a limited liability trust estate is declared bankrupt, against which bankruptcy estate may a holder of a Trust Act claim exercise that claim in full?
General information · Not legal advice
Material to check
In the practice file, we read the bankruptcy declaration concerning the trust estate together with papers showing it is a limited liability trust estate, and the documents evidencing the claim itself, to see whether it is one of the claims the Trust Act provides for. The file should also show the trustee's bankruptcy estate that the second paragraph points to.
These are types of material to look for, not evidence already verified by PRO SE.
Where readings differ
One reading follows the provision step by step: where a bankruptcy declaration concerns a limited liability trust estate, a person holding a claim of the kind the Trust Act provides for may, as a bankruptcy creditor, exercise that claim in full against the trustee's bankruptcy estate.
Another reading notes what the provision does not supply: it names the claim only by reference to the Trust Act, without stating which claims those are, and it does not say how the trustee's bankruptcy estate came to exist or what follows for any claim that person also holds against the trust estate's bankruptcy estate under the first paragraph.
Your judgment
What in the file would show that the claim held is one of the kind the Trust Act provides for, rather than an ordinary claim against the trust estate?
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 describe the Trust Act claim within its own text, or if a court decision explains which claims fall within it and how it interacts with claims against the trust estate's bankruptcy estate.