Bankruptcy Flashcards
1
Q
What items on a bankrupts property don’t pass to trustees in bankruptcy
A
Household items e.g. books, bedding,furniture, vehicles
Tools
Property held on trust for others
2
Q
How long does bankruptcy last?
A
Usually 1 year
3
Q
Highest priority in bankruptcy payments
A
Secured creditors (mortgage lending)
4
Q
Bankruptcy procedure
A
Creditors present petition - 5,000 or more must be owed
Must prove they cannot pay
Application made online after 6 April 2016
Debtors inability to pay must be proved
Official receiver takes control
Debtor must submit statement of affairs
