Bankruptcy module 2

Question 1

What is the standard contents of all notices

Answer 1

A notice must identify the proceedings, if it is relevant to the particular notice, identify the office-holder and state—
(a) the office-holder’s contact details;
(b) the office-holder’s IP number (except for the official receiver);
(c) the name of any person other than the office-holder who may be contacted about the proceedings; and
(d) the date of the office-holder’s appointment.

A Gazette notice relating to a bankruptcy must also identify the bankrupt and state:
(a) any other address at which the bankrupt has resided in the period of 12 months before the making of the bankruptcy order;
(b) any principal trading address if different from the bankrupt’s residential address;
(c) the bankrupt’s dateofbirth;
(d) the bankrupt’s occupation;
(e) any other name by which the bankrupt has been known; and
(f) any name or style (other than the bankrupt’s own name) under which—
(i)the bankrupt carried on business, and (ii)any debt owed to a creditor was incurred.

Question 2

How long does a bankrupt have to notify his trustee of after acquired property/ increase in income?

Answer 2

21 days

Question 3

When does the bankrupt’s estate vest in the trustee?

Answer 3

(1) The bankrupt’s estate shall vest in the trustee immediately on his appointment taking effect or, in the case of the official receiver, on his becoming trustee

On the making of a bankruptcy order the official receiver becomes trustee of the bankrupt’s estate, unless the court appoints another person under subsection 2 (IVA supervisor)

Question 4

What is excluded from the bankrupt’s estate?

Answer 4

(a)such tools, books, vehicles and other items of equipment as are necessary to the bankrupt for use personally by him in his employment, business or vocation;

(b)such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his family

Question 5

What rights do creditors have once a bankruptcy petition has been presented?

Answer 5

Once a bankruptcy petition has been presented, the Court may “stay” (put on hold) any legal proceedings by unsecured creditors, pending the outcome of the petition
 After the making of a bankruptcy order no person who Is a creditor of the bankrupt in respect of a debt provable in the bankruptcy shall—
 have any remedy against the property or person of the bankrupt in respect of that debt, or
 before the discharge of the bankrupt, commence any action or other legal proceedings against the bankrupt except with the leave of the court and on such terms as the court may impose.
 Exceptions:
 Actions by the secured creditors to enforce their security
 Legal actions for claims that are not affected by discharge

Question 5

What is the Effect of bankruptcy on enforcement procedures – s346

Answer 5

…where the creditor of any person who is bankrupt has, before the commencement of the bankruptcy—
(a) issued execution against the goods or land of that person, or
(b) attached a debt due to that person from another person,
 that creditor is not entitled, as against the Official Receiver or trustee of the bankrupt’s estate, to retain the benefit of the execution or attachment, or any sums paid to avoid it, unless the execution or attachment was completed, or the sums were paid, before the commencement of the bankruptcy