Property transferred before bankruptcy, Financial Accounting

PROPERTY TRANSFERRED BEFORE BANKRUPTCY

(a) Voluntary settlements:
The trustee can claim all property settled by the bankrupt on other persons within two years preceding the bankruptcy

(b) Agreements to settle property:
The trustee is not bound by such an agreement if it remains executory. If property has already been settled, the trustee can recover it

(c) Fraudulent preferences:
The trustee can set aside any transaction effected within the six months preceding the presentation of the petition in circumstances such as to make it a fraudulent preference, i.e., a voluntary transaction by an insolvent person in favour of a creditor, or his trustee, with the dominant intention of giving the creditor or a surety, a preference over the other creditors.

(d) Fraudulent conveyances:
The trustee may set aside a transfer of property made by the bankrupt before the commencement of bankruptcy with the intention of defrauding creditors, unless the transferee took the property for good or valuable consideration, in good faith and without notice of that intent.

The trustee cannot recover property in any of the above cases which has been further transferred to a person taking in good faith and for value.

Posted Date: 12/13/2012 12:38:58 AM | Location : United States







Related Discussions:- Property transferred before bankruptcy, Assignment Help, Ask Question on Property transferred before bankruptcy, Get Answer, Expert's Help, Property transferred before bankruptcy Discussions

Write discussion on Property transferred before bankruptcy
Your posts are moderated
Related Questions
PROTECTION AGAINST CLAIMS The trustees may protect themselves against claims after discharge in the following ways:   1. As regards liability for rent and other obligations und

National Association of State Boards of Accountancy - serves as a forum for 54 State Boards of Accountancy, that administer the uniform CPA examination, license Certified Public Ac

Q. Sensitivity Analysis of Project? This system measures the change in project NPV arising from a fixed change in each project variable or measures the change in every project

I need help with a mini accounting project. Here is a link to the questions I need to be answered. Read the questions and instructions and if you think you can complete the case wi

Equitable apportionments There are five leading cases where the courts have laid down rules to meet specific situations in which there is a conflict of interest between life tena

Dividends out of the capital profits Dividends out of the capital profits are apportioned on the same basis as dividends out of income (Re. Doughty). (a) Variation of sec

March and has already accumulated $30,000 in manufacturing costs, Job B and order for 10,000silver medallions, was not started until April. Transactions for these jobs are the foll

Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporat


2(i). If all depositors tried to convert their deposits into cash at once, they would find that there are not sufficient reserves in the system to permit all of them to do this at