Secured creditors-bankruptcy and liquidation, Financial Accounting

SECURED CREDITORS

A secured creditor may:

  • Rely on his security and not prove at all.
  • Surrender his security and prove for the full amount of the debt.
  • Realise his security (if he has a power of sale) and prove for the balance; or
  • stimate the value of his security and prove for the balance.

 

 

He must disclose the security in his proof or surrender it to the trustee unless the court grants relief. If the creditor estimates his security

  • If proof used for voting purposes trustee may within 28 days require him to give up security on payment of its estimated value plus 20% or amount at which revalued by creditor;
  • If valued for dividend purposes trustee may redeem it at any time by paying its assessed value or if dissatisfied with valuation require security to be sold;
  • He may by writing, require trustee to redeem security or have it realised, and if trustee does not do so within six months property vests absolutely in creditor;
  • He may amend valuation and proof at any time unless he has called upon trustee to redeem it;
  • He may realise security and amend his proof accordingly.

 

Posted Date: 12/13/2012 1:08:56 AM | Location : United States







Related Discussions:- Secured creditors-bankruptcy and liquidation, Assignment Help, Ask Question on Secured creditors-bankruptcy and liquidation, Get Answer, Expert's Help, Secured creditors-bankruptcy and liquidation Discussions

Write discussion on Secured creditors-bankruptcy and liquidation
Your posts are moderated
Related Questions
I am an AAT student studying lvl 3 AAT at college. I wish to learn how to complete self assessment end of year tax return forms for other people. That is because I have already bee

business is started with the objective of making profits but the conservatism concept says not to anticipate profit.... why so??

Defunct Companies A company may be dissolved under s.338 without winding up if the registrar has reasonable cause to believe it is defunct: The procedure is: a. Registrar writ

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

I need to know how to do a problem and whether I am missing information.

Q. Evaluate Price Earnings Ratio? The P/E ratio is in general regarded as an important ratio for equity investors. The P/E for a company may be utilizing as a basis for compari

The following figures are taking from the book of Sheen Compnay limited as on december 31,2009 DEBIT SIDE : opening stock Rs 75000 purchases 245000 wages 30000 c

Q. How does FCA diverse from what cities already do? Numerous cities at present employ budget-based, or cash-flow, accounting-they report their present costs and figure their e

O'Neill Co. has $298,106 in accounts receivable on January 1. Budgeted sales for January are $840,001. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80%

a private owned business, pay salary to its employees according to the Ethiopian calendar month to the addis ababa city administration tax authority . Basic salary 3936 ,Normar wor