Other Techy Bits Flashcards
CRAR - pre petition
And 3 months prior to BO
T can claim rent back to the extent of pref shortfall
Landlord becomes 3rd pref creditor
CRAR - post petition pre order
T can claim excess of 6 months rent plus shortfall to prefs
Landlord has 3rd preferential claim in respect of payment to prefs only
CRAR - post BO
Must be before discharge
Landlord entitled to keep 6 months pre BO rent arrears
T can claim over and above
CRAR conditions
Commercial property only - no element of residential
Owed 7 days rent
Notice of action 7 days
Done by HCEO
CRAR / Execution - when has it been completed
When goods are sold
If HCEO has funds though has to be wait 14 days and if gets notice of BO must pay to T
Who gives permission for private T to trade
CC or Court via OR
What can we use to assess income and expenditure
Standard financial statement
If bankrupt misses IPO / IPA payment what is result
S333 contempt of court
Discharge suspended
Application to take money from wages
Insolvency Guidance Papers - Family Homes
- Consider impact on other occupants
- Ensure promptly dealt with
- Ensure relevant info given to all interested parties e.g guide to bankruptcy by IS
- communicate regularly at least every 12 months
- recommend legal advice
Insolvency Guidance Papers - Succession Planning
What should continuity agreement state?
- when it comes into play
- extent / frequency of disclosure of case details and financial info
- steps to be taken and by whom
- access to working papers / practice files
- financial arrangements
- time frames
- PI arrangements
- Obligations of all parties
Should be filed with RPB and PI insurer
Should be reviewed at least annually
Insolvency Guidance Papers - Succession Planning
What is overriding principal
Creditors should not be affected by change
Where would you find info about creditor claims and where would you find voting rights?
Rule 14 and then Rule 15.31
Order of priority - second bankruptcy
- Unpaid expenses / costs of dealing with AAP or IPO by 1st T
- Fees, costs and expenses of second T
- Creditors of 2nd B
- Unsatisfied balance from 1st B
When is IHT not payable and when could it still arise?
If debtor dies after BO but might still arise on gifts in previous 7 years
When does s283a not apply?
In an Insolvency Administration Order
IAO - when does survivor pay debtors value lost in the estate of a property?
When death is within 5 years of IAO.
SIP 3.1 - first meeting with debtor
Explain role of advisor
SIJ - us and them
Explain obligations to co-operate and full disclosure
Ensure debtor understands situation and consequences
Consider impact on family etc.
Debtor provided with
- adv and disadvantages
- costs
Confirm all in writing
Is an IVA right for me
What additional clauses might be in IVA proposals?
Variation Clause
Extension Clause (can only be done from outset)
Excluded assets
After acquired assets
Restrictions to implement (on property for example)
Trust Clause
What acronym do you use for the Nominees report?
FUCAR
IVAS ARE SHORT
What is personal tax allowance?
£12,570
What are the personal tax bands?
20% from PA to £50,270
40% to £150k
45% after £150k
PVA - Small Co Moratorium criteria
T/O < £10.2m
Assets < £5.1m
Employees < 50
Not in Admin/WUC/PVA
Not had in previous 12 months
Note not available for CVAs
When is OR Admin fee and general fee charged on annulment?
Charged in both IVA and payment in full. In ought never have been made - only Admin fee charged.
What is the CGT allowance and tax bands?
£12,300
10% on gains up to £37,700
20% after
What does bankruptcy order do to LPA Receiver?
End agency status of LPA so they are personally liable but may have bank indemnity
What % of partners have to agree to :-
- PVA
- Proposal
100%
75%
CGT - where does it rank in order of priority?
Pre-appt - unsecured
Post-appt - ahead of T remuneration in excess of Schedule 11 fees (even if LPA realised property)
Describe a debt relief order
A formal order under which D gets protection and, later, relief from their debts.
Application by D through approved intermediary
No Court involvement as done through OR
Breathing Space Moratorium - Describe it
D May apply to debt advice provider for BSM
D must obtain advice from debt advice provider
If D meets criteria and is in need of debt solution, application is made to SOS and entry made on individual insolvency register
Creditors will be notified by SOS
Lasts for 60 days unless cancelled or ends due to D
IVA - how is after acquired income determined?
Reasonable Domestic Needs to be agreed between debtor and supervisor.
Otherwise Court to determine in line with IPO
It is for the Supervisor to determine whether surplus is available for creditors
When can self-assessment tax returns be amended?
Within 12 months from January
IVA clause - tax returns
- debtor will make relevant tax elections to maximise returns to creditors
- will bring tax affairs up to date
- will make provision in IVA for any tax arising
IVA - what clause could you introduce if you identify a TUV and debtor not recompensing creditors?
Debtor may state that they are going to disprove the TUV I.e. prove solvency in this will be defence in any bankruptcy
Supervisor may suggest a clause to retain funds sufficient to bring s423 action against debtor and to report within 6 months.
IVA - what can you do with foreign property where it is being realised?
Cannot put RX1 in place but could put legal mortgage over it pending a sale to wife / voluntary sale?
Explain CGT in IVA
If CGT liability arises during tax year in which IVA implemented then unsecured claim (even if sold post IVA)
If CGT liability arises in subsequent tax years post appt then debtor obliged to pay outside of IVA but
Normally clause in IVA to state it’s a cost or if not HMRC add as a mod
IVA - common provisions in Proposals outside of clauses and IA
- bring tax affairs up to date
- file returns on time
- debtor to ensure property fully insured and repairs completed
- provide quarterly accounts to supervisor
- supervisor to bank funds in recognised account
- supervisor to pay dividends at say 6 monthly intervals etc.
- powers of supervisor in line with bankruptcy e.g agreeing claims
- default provisions - calling meeting of creditors
- amount for post variation approval I.e 75%
How might a Trustee deal with a lease
- Sell
- Disclaim if onerous
- Assign with consent of landlord (they cannot unreasonably withhold)
- Forfeiture if in terms of lease happens on BO
- Voluntary surrender
