A ‘trustee of bankruptcy’ is asking for items back for a customer that pawned them and is unfortunately now bankrupt. Where do we stand and what are the procedures about this situation?

They need to send you a solicitor’s letter confirming that this is a legitimate trust and is entitled to the proceeds of the person’s estate.

You would need to point out to them that there is a signed contract with the bankrupt customer and even if they are indeed entitled to the assets of the bankrupts estate, they would still need to pay off the debt to retrieve the item in the usual way - in other words, whilst the trustee may have a right to collect assets for the bankrupt, it does not necessarily mean that agreements or arrangements previously in place are null and void.

If the contract expires during this process it would be reasonable to hold the goods until the matter is resolved. The only way you might be in a position to have to release the item without their paying off the debt, would be if a court ordered you to do so.