Module 14 - Personal Insolvency Claims And Proofs Flashcards
Contents of a Proof of Debt
Creditor contact details;
Total amount of claim;
How and when debt was incurred;
Particulars of any security;
Any RoT details;
Name and address of any person authenticating the proof
Why Prove a Debt?
To make a claim in an insolvency matter;
Form part of Creditors’ Committee;
Vote as part of a decision procedure;
Small debts rule?
What is rule 14.14?
Unliquidated Claim - if claim is for unliquidated or unascertained amount, the officeholder can put an estimated or notional value to the claim. This can be adjusted when evidence becomes available
What is Rule 14.15?
Secured claims - secured creditor can only prove for their claim if they surrender all or part of their security
What is Rule 14.20?
Discounts - trade creditors will deduct from any claim all discounts that would have applied to the contract had their not been a formal insolvency
What is Rule 14.25?
Set off - a creditor must set off nay mutual debts or dealings, deducting moneys they owe to the Bankrupt from moneys they are owed. Only balance is provable
What is Rule 14.21?
Debts in a Foreign Currency - claims in foreign currency will be converted as at date of bankruptcy order
What is Rule 14.22?
Claims for Rent / Those of Periodical Nature - claim for the amount due and unpaid at the date of Bankruptcy Order. For landlord claiming the unexpired period of a lease - this must be mitigated and subject to statutory formula
What is Rule 14.23?
Interest - interest is provable as part of the debt before the Bankruptcy. Either st stated contractual rate or Judgement Acts rate of 8%
What is Limitation Act 1980 Statute Barred Debts?
Normal limit is six years for a contractual claim
What is the Appeal Process for a rejected Proof of Debt?
Trustee rejects a proof of debt;
Creditor has 21 days to appeal;
Court sets a venue for hearing;
Trustee files POD and written statement rejecting POD;
Court hears both sides and makes a decision
What is Section 382?
Provable Debts
What is included in Section 382?
Debts to which Bankrupt is subject on the date of Bankruptcy Order;
Debts the Bankrupt becomes subject to due to a pre-Order obligation;
Any provable interest that accumulated prior to the bankruptcy order;
What is Annulment?
Where the Bankrupt wants to cancel or annul their bankruptcy.
Why Annulment?
Bankruptcy Order ought not to have been made;
All debts and expenses have been paid (or secured) to satisfaction of Court;
When an undischarged Bankrupt has an IVA approved
What is the OR’s fee?
£6,000 at outset of Bankruptcy
When was the new fee regime introduced?
21 July 2016
What is the earliest you can be discharged from Bankruptcy Order?
12 months;
No early discharge;
This can be suspended
2 Effects of Discharge?
Releasing Bankrupt from various disabilities of Bankruptcy;
Releasing Bankrupt from both proved and disproved Bankruptcy Debts
Discharge will have no effect on what?
Any residual actions of Trustee;
Right of any secured creditor to enforce their security;
Right to pursue any debt incurred by means of fraud;
Right to pursue a Bankrupt for a fine
What is a Second Bankruptcy?
Where a person is made Bankrupt whilst they are still an undischarged Bankrupt
What can the Trustee of the first Bankruptcy claim for in the Second Bankruptcy?
Any unpaid expenses from first Bankruptcy;
Unsatisfied balance of debts from the first Bankruptcy;
Any interest payable on this balance
Order of payments in Second Bankruptcy?
Unpaid costs and expenses for dealing with after acquired property and IPO;
Fees costs and expenses of second Bankruptcy;
Creditors of second Bankruptcy, plus stat interest;
Unsatisfied balance of creditors, interest and expenses of first bankruptcy
