Chapter 27 & 28 - Discharge, annulment & vacation of office Flashcards
What happens when a bankrupt is discharged?
They are released from all bankruptcy debts and disabilities of bankruptcy no longer apply
Does the estate re-vest with the bankrupt on discharge?
No - powers and duties of trustee in relation to the estate are unaffected by discharge.
When is a bankrupt discharged?
Discharge is automatic one year from the date of bankruptcy order
When could the trustee apply for extension of discharge of bankrupt?
- Bankrupt does not comply to his obligations
- Trustee has grounds to believe bankrupt is concealing information or property
Who can apply for a Bankrupt Restriction Order?
The Secretary of State or the OR
Within what time frame must a Bankrupt Restriction Order be made?
Within one year of the date of bankruptcy order
How long does a Bankruptcy Restriction Order last?
Between 2 to 15 years
What is the effect of a Bankruptcy Restriction Order?
During this period the disabilities resulting from bankruptcy continue to apply
eg. disqualification as a director, restrictions on credit
What grounds are there for Bankruptcy Restriction Order?
- Failure to keep records that account for loss of property
- Failure to produce records
- Entering transaction at undervalue
- Giving preference
- Making excessive pension contributions
- Trading when ought to have known unable to pay
- Incurring debt when no reasonable expectation to pay back
- Neglect of business affairs
- Been bankrupt in previous 6 years
When can a bankruptcy be annualled?
- the order ought not to have been made
- Bankruptcy debts and expenses have all been paid in full or secured to satisfaction of the court
- Where an IVA is approved in regard to an undischarged bankrupt
When there is an application for annulment of bankruptcy, within what time frame must the trustee file a report on the bankruptcy?
At least 21 days pre-hearing
(not needed if annulment is because order should not have been done in the first place)
When is the information deleted from the Individual Insolvency Register?
- Receipt of SoS of notice of annulment
- Expiry of 3 month’s after the date of bankrupts discharge
What are the four ways a trustee can vacate office?
- Resignation
- By operation of law
- On annulment of bankruptcy order
- Removal by court or creditors
What are the four ground for which a trustee can resign?
- Ill health
- Intends ceasing to be an IP
- There are joint trustees and no longer need to have more than one
- Conflict of interest/change in personal circumstances
What circumstances will there be a vacation of trustee by operation of law?
- On death of trustee
- On the trustee ceasing to be an IP
- Following an annulment
On annulment of bankruptcy, trustee must sent a report of SoS, in what time period and what must it include?
As soon as reasonable practicable after annulment and also filed at court
Includes:
- summary of trustees receipts and payments
- statement of reconciliation with the SoS account
A trustee can be removed from office if how many creditors request a decision procedure?
25% in value
The trustee will vacate office within what time period after giving notice?
8 weeks
When a bankruptcy order is annulled, when does the trustee obtain his release?
Although the trustee vacates office on annulment, he will not receive his release automatically.
Must submit a copy of his final account to SoS and court. The court will then determine the date and time of release.
What are the three circumstances in which a trustee will automatically vacate office?
- death
- ceasing to be an IP
- on annulment
