Flashcards
F: Insolvency & Bankruptcy
Cards in this deck (9)
- 1Governed by Insolvency Act 1986 as amended by Enterprise Act 2002Debtor must owe at least £750
Statutory demand not complied with within 3 weeks - 2Official receiver takes control of debtors propertyTrustee in bankruptcy may be appointed as insolvency practitioner at meeting of creditors
- 3Trustee realises and distributes bankrupt's estateDebtors entitled to retain 'tools of their trade inc. vehicle if needed for employment
- 4Enterprise Act 2002 made changes to extent which home is part of bankrupt's estateCreditors do not normally get all their money back
- 5Trustee converts bankrupt's property into money to pay debts1. Costs of bankruptcy
2. Preferential debts
3. Ordinary unsecured creditors - 6Normally continues for 12 months under Enterprise Act 2002Disqualifications include acting as company director and obtaining credit > £500 without disclosure
- 7Liquidation brings existence of company to an end and administers property to creditorsLiquidator take control of company, collects assets, pays debts, and distributes surplus to members
- 8Alternatives to liquidation: 1. Administration - administrator runs company as going concern2. Voluntary arrangement - satisfactory settlement between company and creditors
- 9Company is dissolved and removed from Register of CompaniesCreditors have to make formal claim to recover their money
Information
- Description
- CII - Level 4 Diploma R01 - Financial services, regulation, and ethics (C3: Legal concepts and considerations relevant) Flashcards on F: Insolvency & Bankruptcy, created by Mark Varela on 27/03/2014.
- Created by
- Mark Varela · Mar 2014
- Updated
- Aug 18, 2017
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