Chapter 5 - Insolvency computations Flashcards
Who are preferential creditors?
Employee wages for four months pre relevant date, up to £800
All accrued holiday pay
Who are secondary preferential creditors?
VAT
PAYE and Employee NIC
CIS
Prescribed part applies to floating charges created on or after what date?
15 September 2003
When does the prescribed part not apply?
- Net property less than £10,000
- Net property is more than £10,000 but apply to court on basis that cost of making the distribution outweigh the benefits
- Where liquidator or administrator proposes CVA
What is the calculation for the prescribed part?
50% of first £10,000 of net property
Plus 20% of the balance
Up to a maximum of £600,000 (or £800,000 is after 5 April 2020)
True or false - the costs of making the prescribed part distribution are deducted from the prescribed part itself
True
Calculated prescribed part and then deduct the costs
Who pays into the ISA?
Liquidators in compulsory liquidators and trustees in bankruptcy
What is the OR’s general fee? and what is the OR’s administration fee?
£6,000 general fee
if acting as trustee the OR is entitled to 15% fee on the asset realisations.
When is the Statement of Affairs prepared in the Creditors Voluntary Liquidation?
Not more than 14 days before date resolution to wind up
When is the Statement of Affairs prepared in the Company Voluntary Arrangement?
Not more than 14 days before date of notice to nominee
When is Statement of Affairs prepared in an Administrations?
As at date of administration
When is Statement of Affairs prepared in a compulsory liquidation?
As at date of appointment
What is the order of priority of payment for creditors in a creditors voluntary liquidation?
Fixed charge creditors
Costs of liquidation (& remuneration)
Prefs
Prescribed part if applicable
Floating charge creditors
Unsecured creditors
Interest on creditor claims
Return of capital
