BPP

Question 1

How long does a statutory demand need to be outstanding for in order to be deemed “unsatisfied” and therefore make the recipient insolvent?

Answer 1

21 days

Question 2

How many days does a company have to apply for injunction in relation to the statutory demand?

Answer 2

18 days

Question 3

How many days does a debtor (personal bankruptcy) have to set aside the statutory demand?

Answer 3

18 days

Question 4

What is the maximum period between the declaration of solvency and the General Meeting of the Shareholders?

Answer 4

5 weeks (in case of MVL)

Question 5

Once a General Meeting notice has been sent how long until the meeting of the members can actually be held?

Answer 5

14 days in an MVL.

In a CVL:

14 days if it’s a private company, 21 days if it’s a PLC

Question 6

What % of members must agree if they want to hold the general meeting earlier in the case of a PLC?

Answer 6

95%

Question 7

What % of members must agree if they want to hold the general meeting earlier in the case of a LTD?

Answer 7

90%

Question 8

What is the latest that the general meeting can be held from the date of the General Meeting notice being sent?

Answer 8

28 days

Question 9

Once the company is in liquidation, within what time frame should the company advertise (Gazette)?

Answer 9

14 days

Question 10

Once the company is in liquidation, within what time frame should the company send a notice to the Registrar of Companies (Companies House)?

Answer 10

15 days

Question 11

Once the company is in liquidation, within what time frame should the liquidator advertise (Gazette)?

Answer 11

14 days

Question 12

Once the company is in liquidation, within what time frame should the liquidator send the notice to the Registrar of Companies (Companies House)?

Answer 12

14 days

Question 13

Once the company is in liquidation, within what time frame should the liquidator notify creditors?

Answer 13

28 days

Question 14

Once the MVL liquidator realizes that the company is insolvent, how soon should he convene a meeting of the creditors to change it to a CVL?

Answer 14

28 days

Question 15

Once a petition has been serviced for a compulsory liquidation, how long can the liquidation NOT be advertised for?

Answer 15

7 days

Question 16

How many days before the court hearing can the liquidation NOT be advertised for?

Answer 16

7 days

Question 17

How long is it generally between servicing the winding-up petition and the court hearing?

Answer 17

14 days

Question 18

How many days before the court hearing does the certificate of service need to be filed?

Answer 18

5 BD

Question 19

What is the penalty for directors in the case of fraudulent trading?

Answer 19

10 years +/- fine

Question 20

What is the penalty for directors in the case of wrongful trading?

Answer 20

No criminal liability just a fine

Question 21

How long is the director disqualification generally for?

Answer 21

2-15 years (both fraudulent and wrongful trading)

Question 22

What is the penalty for money laundering?

Answer 22

max 14 years +/- fine

Question 23

What is the penalty for failure to report money laundering?

Answer 23

max 5 years +/- fine

Question 24

What is the penalty for tipping off?

Answer 24

max 2 years +/- fine

Question 25

How many case notice should a QFCH receive in case of out of court admin?

Answer 25

2 BD for QFCH initiated process | 5 BD for Director / Shareholder initiated process

Question 26

How many votes are needed to initiate out of court admin?

Answer 26

>50% (simple majority) of either directors @ BoD meeting or shareholders @ General Meeting

Question 27

How long is the Interim Moratorium in Admin?

Answer 27

5BD for QFCH initiated from date of notice to QFCH | 10 BD for director / shareholder from date of notice to QFCH

Question 28

After Administrator's appointment how many days does the Admin have to file the notice with Companies House?

Answer 28

7 days

Question 29

How long after appointment should the Administrator request the SOFA?

Answer 29

ASARP

Question 30

How long from Admin's request should the SOFA be received?

Answer 30

11 days

Question 31

If the SOFA has limited disclosure, how long of a notice should the creditors give to Admin before applying to court?

Answer 31

3 days

Question 32

When should the Admin send the proposal to creditors?

Answer 32

ASARP

Question 33

How long does the bankrupt have to declare excessive income?

Answer 33

21 days

Question 34

How long does the Trustee have to claim excessive income?

Answer 34

42 days from being notified

Question 35

How long does the bankrupt have to declare after acquired property (lottery / inheritance)?

Answer 35

21 days

Question 36

How long does the Trustee have to claim after acquired property?

Answer 36

42 days from being notified

Question 37

How long does a Bankruptcy Restriction Order last for?

Answer 37

2 - 15 years

Question 38

What is the difference between BRO and Bankruptcy Offences?

Answer 38

BRO is a civil penalty (balance of probabilities) while Bankruptcy Offences are criminal penalties. However, violating the BRO is a criminal offence.

Question 39

When does the family home vest back into the bankrupt?

Answer 39

3 years if the Trustee has not been able to sell it

Question 40

How long does the right of occupation generally last?

Answer 40

12 months

Question 41

How long after bankruptcy do creditors' interests generally outweigh all other considerations?

Answer 41

12 months

Question 42

When does generally the discharge from bankruptcy occur?

Answer 42

After 12 months

Question 43

What is bankruptcy suspension?

Answer 43

Extend the bankruptcy period beyond 12 months for a) specific period of time or b) until certain conditions are met

Question 44

In the case of an IVA, what is the earliest that the proposal can be prepared prior to notice being sent to the nominee?

Answer 44

14 days (i.e. proposal must not be more than 14 days old before the nominee receives the notice)

Question 45

How long does an Interim Order moratorium last?

Answer 45

14 days assuming no prior application for Interim Order in the last 12 months

Question 46

In an administration how long does the Admin have to send the proposal from the time of appointment?

Answer 46

max 8 weeks

Question 47

How long does the Admin have to get the creditors' decision on the proposal?

Answer 47

max 10 weeks from appointment (i.e. 2 weeks from the time the proposal is sent out)

Question 48

In an administration how often are progress reports prepared?

Answer 48

First report should be issued within 1 month of 6 months from appointment and then every 6 months after that

Question 49

In a CVA, how long do the directors have to submit the proposal and SOFA?

Answer 49

14 days from the notice of the proposal being sent to the IP, but it needs to be accompanied by the statement of truth to be valid

Question 50

What is the statement of truth?

Answer 50

Statement accompanying the SOFA in a CVA, and needs to be sent within 14 days of the notice of proposal being sent to the IP.

Question 51

How long does the IP have to comment on the CVA proposal from the time the notice is endorsed by the IP with consent to act?

Answer 51

28 days

Question 52

How often should progress reports be provided in a CVA?

Answer 52

First report is within 2 months of the 12 month anniversary, and then it's every 12 months

Question 53

When should the creditors decision take place in a CVA?

Answer 53

Min 14, max 28 days after the notice to creditors has been sent

Question 54

When should the members vote on the CVA?

Answer 54

5BD AFTER creditors

Question 55

When should the report on voting be submitted in a CVA?

Answer 55

Within 4 BD after the voting has taken place

Question 56

How long does an IP have to accept an AR appointment?

Answer 56

verbally (1 day after being notified) or in written format (5 days after being notified)

Question 57

How soon should the Companies House be notified of an IP appointment in relation to an Admin Receivership?

Answer 57

7 days after appointment

Question 58

How soon should a notice of appointment for an AR be advertised by the Company in the gazette?

Answer 58

ASARP

Question 59

How soon should the creditors be notified of an AR appointment?

Answer 59

Within 28 days

Question 60

How soon should an AR receive a SOFA?

Answer 60

Within 21 days of appointment, but needs to be accompanied by a statement of concurrence

Question 61

In addition to the SOFA what else should the AR receive?

Answer 61

Statement of Concurrence

Question 62

How often should the AR provide progress reports to creditors?

Answer 62

Within 2 months of the 12 month anniversary of the appointment, and then every 12 months after that

Question 63

What is the relevant time for TUV in a bankruptcy?

Answer 63

5 years

Question 64

What is the relevant time for TUV in an insolvency?

Answer 64

2 years

Question 65

Is insolvency presumed for TUV?

Answer 65

yes if connected, not of unconnected

Question 66

For TUV is insolvency required to be shown at transaction date?

Answer 66

Yes (insolvency), Yes (2-5 years of bankruptcy), No (0-2 years of bankruptcy)

Question 67

What is the relevant time for preferences in a bankruptcy?

Answer 67

2 years connected / 6 months unconnected

Question 68

What is the relevant time for preferences in an insolvency?

Answer 68

2 years connected / 6 months unconnected

Question 69

Is the bankrupt supposed to have been insolvent at the time of transaction for preference claim to be valid?

Answer 69

Yes

Question 70

Is the debtor supposed to have been insolvent at the time of transaction for preference claim to be valid?

Answer 70

Yes

Question 71

Is insolvency presumed for preference transactions?

Answer 71

No, but for connected parties "desire to prefer is presumed"

Question 72

What is the relevant time for extortionate credit in a bankruptcy?

Answer 72

3 years

Question 73

What is the relevant time for extortionate credit in an insolvency?

Answer 73

3 years

Question 74

Is insolvency required at the time of transaction for extortionate credit claim to be valid?

Answer 74

No

Question 75

What is the relevant time for transactions defrauding creditors?

Answer 75

Infinite - no time limit

Question 76

Is insolvency required at the time of transaction for transactions defrauding creditors?

Answer 76

No

Question 77

Is insolvency presumed at the time of transaction in the case of transactions defrauding creditors?

Answer 77

No

Question 78

What is the relevant time for excessive pension contributions in the case of a bankruptcy?

Answer 78

Infinite - no time limit

Question 79

Is insolvency required at the time of excessive pension contributions for them to be valid?

Answer 79

No

Question 80

Is insolvency presumed at time of excessive pension contributions?

Answer 80

No

Question 81

What is the relevant time for post petition disposals in a bankruptcy?

Answer 81

Time between petition and appointment

Question 82

Is insolvency required at the time of transaction for post petition disposal?

Answer 82

No

Question 83

What is the relevant time for avoidance of floating charges?

Answer 83

2 years if connected, 1 year if unconnected

Question 84

Is insolvency required to be demonstrated at time of transaction in the case of floating charge avoidance?

Answer 84

Yes for connected / No for unconnected