Provable debts-bankruptcy and liquidation, Financial Accounting


All debts and liabilities present or future, certain or contingent, are provable in bankruptcy, except:

1) Claims for unliquidated damages in tort;

2) Debts incurred after the creditor had notice of an available act of bankruptcy;

3) Debts incapable of being fairly estimated;

4) Debts incurred after the date of the receiving order;

5) Debts void or unenforceable under the ordinary law of contract;

6) Maintenance payable by a husband to his wife.

7) Guarantees: The creditor or a surety (but not both) may prove in the bankruptcy of the principal debtor; a surety may prove in the bankruptcy of a co-surety; and a creditor may prove in the bankruptcy of a surety.

8) Bills of exchange: The holder may prove in the bankruptcy of all prior parties, unless the bill was made for his accommodation.

9) Annuities: An annuitant may prove for the estimated value of the annuity; if he dies before the proof is accepted, the amount becomes certain and the proof must be amended;

10) Periodical payments: Rent and other payments falling due at stated periods may be apportioned and proof from the person entitled to payment may be lodged for the proportionate part accruing due at the date of the receiving order.

11) Interest: Interest may be claimed-up to the date of the receiving order - if it is payable:By agreement;By statute.

Posted Date: 12/13/2012 1:03:15 AM | Location : United States

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