Proof of debts-bankruptcy and liquidation, Financial Accounting

PROOF OF DEBTS

The following rules apply as to the proving of debts:

1) A creditor has no right to vote or receive dividends until his debt is proved to the satisfaction of the trustee;

2) Proofs should be made by affidavit as soon as possible after the receiving order - but may be accepted at any time before the final dividend;

3) Proofs may be made provisionally accepted for voting at the first meeting of creditors;

4) The trustee (but not the O.R.) must deal with a proof within 28 days of receipt; if the proof is rejected the creditor may appeal to the court within 21 days;

5) The trustee must satisfy himself that there is a real debt; he is not bound by any judgement or  estoppel against the debtor;

6) The trustee may apply to the court to expunge or reduce a debt wrongfully admitted;

7) The trustee must each month file with the court all proofs admitted or rejected in the previous month and on declaring a dividend he must send to the court a list of proofs so filed;

8) Proof on a contingent debt may be admitted for dividend purposes but not for voting while the contingency remains;

9) Double proof is not allowed in the same bankruptcy for the same debt but proof may be lodged against two separate estates for the same debt.

Posted Date: 12/13/2012 1:12:43 AM | Location : United States







Related Discussions:- Proof of debts-bankruptcy and liquidation, Assignment Help, Ask Question on Proof of debts-bankruptcy and liquidation, Get Answer, Expert's Help, Proof of debts-bankruptcy and liquidation Discussions

Write discussion on Proof of debts-bankruptcy and liquidation
Your posts are moderated
Related Questions
The following items represent liabilities on a firm's balance sheet: a. An amount of money owed to a supplier based on the terms 2/20, n/40, for which no note was executed. b. An a

Determine about the accounting information Numerous user groups have an interest in accounting information relating to a business. Majority of these are outside the business ho

Question: A proprietary life company issues only non-profit guaranteed growth bonds. The company invests only in equities with an expected return of 10% p.a, the risk free rate


Question: The manager of Ben and Jerry's Ice Cream is told that the direct material quantity variance for cherries in Cherries Garcia Ice cream is favorable. What could explain thi

Appointment of Liquidator The liquidator is appointed by the court after the above meetings have been held: if the meetings do not agree, the court must settle the issue: if no a

Money demand in an economy in which no interest is paid on money is M d /P = 500 + 0.2Y - 1000i (a) Suppose that P = 100, Y = 1000, and i = 0.10. Find real money demand, nomi

Q. What do you mean by Auditors Report? Auditors' Report - Written communication issued by an independent CERTIFIED PUBLIC ACCOUNTANT (CPA) describing the character of her or h

Straight-Line Depreciation - ACCOUNTING method which reflects an equal amount of wear and tear during every period of an ASSET'S useful life. For example annual STRAIGHT-LINE DEPRE