Chapter 27 & 28 - Discharge, annulment & vacation of office

Question 1

What happens when a bankrupt is discharged?

Answer 1

They are released from all bankruptcy debts and disabilities of bankruptcy no longer apply

Question 2

Does the estate re-vest with the bankrupt on discharge?

Answer 2

No - powers and duties of trustee in relation to the estate are unaffected by discharge.

Question 3

When is a bankrupt discharged?

Answer 3

Discharge is automatic one year from the date of bankruptcy order

Question 4

When could the trustee apply for extension of discharge of bankrupt?

Answer 4

• Bankrupt does not comply to his obligations
• Trustee has grounds to believe bankrupt is concealing information or property

Question 5

Who can apply for a Bankrupt Restriction Order?

Answer 5

The Secretary of State or the OR

Question 6

Within what time frame must a Bankrupt Restriction Order be made?

Answer 6

Within one year of the date of bankruptcy order

Question 7

How long does a Bankruptcy Restriction Order last?

Answer 7

Between 2 to 15 years

Question 8

What is the effect of a Bankruptcy Restriction Order?

Answer 8

During this period the disabilities resulting from bankruptcy continue to apply

eg. disqualification as a director, restrictions on credit

Question 9

What grounds are there for Bankruptcy Restriction Order?

Answer 9

• 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

Question 10

When can a bankruptcy be annualled?

Answer 10

• 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

Question 11

When there is an application for annulment of bankruptcy, within what time frame must the trustee file a report on the bankruptcy?

Answer 11

At least 21 days pre-hearing

(not needed if annulment is because order should not have been done in the first place)

Question 12

When is the information deleted from the Individual Insolvency Register?

Answer 12

• Receipt of SoS of notice of annulment
• Expiry of 3 month’s after the date of bankrupts discharge

Question 13

What are the four ways a trustee can vacate office?

Answer 13

• Resignation
• By operation of law
• On annulment of bankruptcy order
• Removal by court or creditors

Question 14

What are the four ground for which a trustee can resign?

Answer 14

• 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

Question 15

What circumstances will there be a vacation of trustee by operation of law?

Answer 15

• On death of trustee
• On the trustee ceasing to be an IP
• Following an annulment

Question 16

On annulment of bankruptcy, trustee must sent a report of SoS, in what time period and what must it include?

Answer 16

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

Question 17

A trustee can be removed from office if how many creditors request a decision procedure?

Answer 17

25% in value

Question 18

The trustee will vacate office within what time period after giving notice?

Answer 18

8 weeks

Question 19

When a bankruptcy order is annulled, when does the trustee obtain his release?

Answer 19

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.

Question 20

What are the three circumstances in which a trustee will automatically vacate office?

Answer 20

• death
• ceasing to be an IP
• on annulment