Debtors property at commencement of bankruptcy, Financial Accounting

Assignment Help:

DEBTOR'S PROPERTY AT COMMENCEMENT OF BANKRUPTCY

1) Doctrine of "relation back":

The trustee's title to the debtor's property is deemed to relate back to the commencement of the bankruptcy, i.e., the time the act of bankruptcy was committed on which the receiving order was made or, if the bankrupt committed more than one act of bankruptcy

2) Protected transactions:   

Payment or transfer of money or property of the bankrupt by a person in possession of it to some other person, after the date, but before the gazetting, of the receiving order, provided that the transferor had no notice of the receiving order.

3) Completed executions:

A judgement creditor cannot retain the "benefit" of an execution or attachment, unless he has completed it-

  • Before the date of the receiving order, and
  • Without notice of the presentation of a petition or the commission of an available act of bankruptcy,

 

4) Trust Property:

Property held by the bankrupt on trust for any other person does not pass to his trustee.

5) Excepted articles:

The trustee cannot claim the tools of the bankrupt's trade or necessary wearing apparel and bedding of the bankrupt and his family to a total value not exceeding Shs 500.

6) Determinable interests:

The trustee cannot claim property in which the bankrupt's interest is determinable upon bankruptcy, except property settled by the bankrupt on himself on these terms.

7)  Personal rights of action:

Rights of action relating to the bankrupt's property pass to the trustee, but those affecting his person, e.g. for assault or libel, do not.

8) Contracts of personal service:

Contracts involving the personal skill of the bankrupt do not pass to the trustee: other contracts do unless disclaimed.


Related Discussions:- Debtors property at commencement of bankruptcy

Mini-max system, In this method the minimum and maximum level for all items...

In this method the minimum and maximum level for all items of inventory are fixed. These levels function as an origin for initiating action so that the quantity of all items is con

Accrual-based income statement for 2011, The Wanless Corporation provides I...

The Wanless Corporation provides Internet consulting services to a wide-range of customers. The company's fiscal year ends on December 31. For the year ended December 31, 2011, the

Explain what happens if a swap is used ineffectively, The key criterion for...

The key criterion for qualifying as a hedge is that the hedging relationship must be highly effective in achieving offsetting changes in fair values or cash flows based on the hedg

Compute gross income from sales, 1. Ben lost his job when his employer move...

1. Ben lost his job when his employer moved its plant. During the year, he collected unemployment benefits for three months, a total of $1,800. While he was waiting to hear from pr

Journalize, wrote check to purchase law books for 2500 what 2 accounts

wrote check to purchase law books for 2500 what 2 accounts

Cost related issue of debt, Q. Cost related issue of debt? Debt is chea...

Q. Cost related issue of debt? Debt is cheaper in comparison of equity because debt is less risky from an investor point of view. This is for the reason that it is often secure

Debit and credit ., How can we differentiate debit and credit

How can we differentiate debit and credit

According to the management perspective cost , Cost: - According to the ma...

Cost: - According to the management perspective cost is define as a reduction in the value of assets for to secure benefit or gain. In other words cost is the different expenses

Re-order period - standard eoq model, The standard EOQ model supposes that ...

The standard EOQ model supposes that materials can be procured immediately and thus implies that the firm may place an order for replenishment as the inventory level drops to zero.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd