Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CPI > Personal Insolvency > Flashcards

Personal Insolvency Flashcards

1
Q

Not provable debts

A 
Secured debts
student loans
Foreign (non-EU) taxes
matrimonial periodic payment
fines
child support payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

provable debts but not discharged

A

matrimonial lump sum
Fraud
damages for personal injury

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Provable debts

A

Debts to which Bankrupt was subject at date of order
Debts to which Bankrutpt became liable as a result of an obligation pre-dating the order
interest up to the date of the order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Time for removal from bankruptcy register

A

Annulment (never should have been ordered) immediately upon receipt of notice of annulment order
Annulment (fully paid or IVA) 2 years of annulment order
Discharge 5 years of BK order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Grounds for BRO

A

failure to keep records that account for loss of property by BK/his business in last 2 years

failure to produce records on demand from OR/TiB

TUV
preference
excessive pension contribution

failure to supply services/good which have been paid for in advance

wrongful trading

incurring debt with no reasonable expectation of being able to repay

faillure to account for loss of property

Gambling/rash and hazardous speculation/unreasonable extravagance contibuting to bankruptcy

neglect of business affairs

Fraud

Failure to cooperate with OR/TiB

BK in last 6 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who can apply for BRO

A

Secretary of State or OR

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Application deadline for BRO

A

Within 1 years of BK order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Grounds for annulment of BK

A
  1. On any grounds existing at the time of the order, the order ought not to have been made
  2. BK debts and expenses are paid in full or secured to satisfaction of the court
  3. IVA is approved
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

TiB’s investigative powers

A

Power to:

  1. seek decision from creditors (s. 314)
  2. summon committee meeting

Apply to court for

  1. Public examination (s. 290)
  2. Private examination (s. 366)
  3. power of arrest (s.364)
  4. seizure of BK’s property, books, papers and records (s. 365)

Power to:

  1. demand docs from HMRC (s. 369)
  2. redirect mail (s. 371)
  3. Obtain Land Registry entities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Court factors to consider in possession hearing

A
  1. interests of BK’s creditors (primary after 12 months)
  2. conduct of spouse/former spouse in contributing to BK and their needs and resources
  3. Needs of children and dependents
  4. all circumstances of the case (except BK’s needs)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Assets excluded from BK estate

A
  1. Tools, books, vehicles and equipment necessary for BK’s employment, business or vocation
  2. clothing, bedding, furniture, household equipement and provisions necessary to satisfy basic domestic needs of the BK and his familiy
  3. Property on trust for another
  4. income for reasonable domestic needs (otherwise claimable under IPO/IPA)
  5. after acquired property
  6. Assets subject to forfeiture clauses
  7. peerages and titles of honour
  8. personal correspondence
  9. rights under an approved pension scheme
  10. damages in respect of pain, suffering, defamation and hurt feelings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Consents from creditor’s committee in bankruptcy

A

TiB appointing the BK to:

  • superintend the management of the estate
  • carry on the business for the benefit of the creditors
  • assist in the administration of the estate

Sanction a division and distribution of property in specie

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Obligations of Bankrupt

A
  1. deliver to OR/Trustee all books, papers and records which he has in possession or control
  2. deliver possession of the BK estate to the OR/TiB
  3. Provide accounts for past 3 years (if running a business)
  4. SofA within 21 days of request
  5. Notify of any after acquired property within 21 days
  6. attend public or private examinations if requested to do so
  7. attend creditors’ meetings
  8. six monthly provison of info on sales, purchases, profits and losses of business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Disabilities of bankruptcy

A
  1. director disqualification
  2. professional disqualification
  3. disclosure of bankrupt trading name
  4. disclosure of BK status when obtaining credit of more than £500
  5. partnerships dissolved (unless partnership agreement provides otherwise)
  6. May be liable for BK offences
  7. duties of cooperation and provision of documents and estate possession to OR/TiB
  8. Post petition dispositions are void. s. 284 IA
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Duties of Trustee

A
  1. get in and take possession of the estate (s. 305)
  2. realise the assets of the estate for distribution in the statutory order of priority and turn over any surplus to BK
  3. Pay cash receipts into ISA (within 14 days or immediately if over £5k)
  4. prepare and send progress reports
  5. take possession of books, records
  6. call meeting of creditors if requisitioned
  7. prepare a separate financial record and retain for 6 years
  8. send to SofS upon request account of receipts and payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Protocol IVA - types of debtor appropriate for

A
  • in receipt of regular sustainable income
  • 3 or more lines of credit from 2 or more creditors

No disputed debts
No investment properties
No possibility of full and final settlement in first year

17
Q

Protocol IVA - emergency expenditure/unforeseen reduction in income. Conditions for payment holiday

A
  1. Full details of inability to pay provided to Supervisor’s satisfaction
  2. In total no more than 9 month’s payments can be agreed to be missed
  3. IVA duration extended by no more than 12 additional months to allow debtor to make up the shortfall
18
Q

Protocol IVA - Supervisor options on breach

A

Within 28 days of breach
Terminate or seek creditors’ view where appropriate on:
- variation of IVA terms
- Issue a certificate of termination to end IVA by way of default
- petition for bankruptcy

19
Q

Protocol IVA - redundancy

A
  1. Inform supervisor within 14 days of:
    - redundancy
    - amount of any redundancy payment
  2. Pay over redundancy paymen in excess of 6 months’ salary
  3. Keep up monthly contribution where possible
  4. Keep supervisor informed of employment status
20
Q

Protocol IVA - overtime, bonus or commission

A
  • report to supervisor within 14 days if sum exceeds 10% of normal income
  • 50% of amount of 10% of normal income to be paid to supervisor within 14 days of disclosure
  • degault if failure to disclose or pay. Can remedy but IVA cannot be extended by more than 6 months to allow for recovery of sums due to remedy breach
21
Q

Protocol IVA - what needs to be formally verified

A
  1. secured loan (mortgage/bank statements)
  2. Rent (tenancy agreement or bank statement)
  3. Council tax (council tax statement or bank statement)
  4. Vehicle finance (relevant HP agreement)
  5. Pension (pension scheme docs or wage/slip contribution statement)
    6 Other financial commitment eg. endowment policies, life policies, health insurance and PPI (reference to appropriate documentation)
22
Q

Protocol IVA - pension contributions

A

If under 55, minimum contributions only

If over 55, average of last 6 month contribution s.t. no more than £75 above minimum contribution or max 4% of gross salary

23
Q

Protocol IVA - remortgage criteria

A
  1. Maximum 85% LTV
  2. incremental cost is no more than 50% of monthly contribution at review date
  3. New worth release is not more than 100p in £ of creditors’ claim excluding statutory interest
  4. remortgage term does not exceed later of state retirement age or existing mortgage term
  5. Amount of money introduced will be mortgage proceeds less costs of remortgage (inc. costs of redeeming existing mortgage)

£5k de minimis

24
Q

Grounds for Supervisor presenting a bankruptcy petition

A
  1. failure to comply with obligations under the IVA
  2. false or misleading material information or making a material omission in any document at the creditors’ meeting
  3. failure to comply with supervisor’s reasonable request

CPI (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions