Insolvency

Question 1

Debt threshhold for insolvency

Answer 1

£750 s267(2)

Question 2

Proof of insolvency (by creditor)

Answer 2

Service if statutory demand for payment + 3 weeks unpaid OR
court order for payment unsatisfied OR
statutory demand for future payment + 3 weeks without proof of ability to pay
S268

Question 3

How a creditor gets a bankruptcy order

Answer 3

Petitions court. Court MAY grant order.

Question 4

How a debtor gets a bankruptcy order

Answer 4

presents particulars of creditors, debts, liabilities, assets as proof of insolvency. S272

Question 5

After acquired property, section

Answer 5

307(1)

Question 6

Disclaim onerous property, section

Answer 6

315

Question 7

Time limit to set aside transactions at undervalue

Answer 7

5 years. S339

Question 8

Time limits to set aside preferences

Answer 8

2 years associates. 6 months for others.

Question 9

Requirement for transaction to be a transaction to defraud

Answer 9

Motive

Question 10

Time limit for transaction defrauding creditors

Answer 10

None

Question 11

How long can an ipo or ipa last

Answer 11

3 years

Question 12

What can a bankrupt keep

Answer 12

Tools of trade and basic domestic needs (s283(2))

Question 13

Can OR sell furniture etc?

Answer 13

If valuable can require replacement with a cheaper version

Question 14

What about the family home?

Answer 14

After 1 year, needs of creditors will outweigh those of occupants. S336(5)

Question 15

Default period of bankruptcy

Answer 15

1 year s279(1)

Question 16

Order of distribution of assets

Answer 16

1. Secured creditors
2. Costs of bankruptcy
3. Preferential debts (eg employees)
4. Ordinary unsecured creditors (inc HMRC)
5. Statutory interest
6. Postponed creditors (eg partner)