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Effect of receiving order, Financial Accounting
Effect of receiving order
The consequences of the making of the receiving order are:
The debtor retains ownership, but loses possession and control of his property;
The official receiver becomes receiver of the debtor's property;
No legal proceedings may be brought in respect of provable debts except by leave of the court;
Transactions subsequently entered into by the debtor are prima facie invalid;
The receiving order must be advertised in the gazette;
Posted Date: 12/12/2012 6:15:58 AM | Location : United States
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