Small bankruptcies-bankruptcy and liquidation, Financial Accounting

SMALL BANKRUPTCIES

The court may order the estate of a debtor to be administered summarily, if the debtor's assets are not likely to exceed Shs 12,000 in value.  This is known as a "small bankruptcy" or "summary case".

A small bankruptcy differs from an ordinary bankruptcy in the following respects:

  1. The Official Receiver acts as trustees;
  2. There is no committee of inspection — the court gives all necessary consents;
  3. The proceedings need not be advertised in a local paper;
  4. The court may adjudge the debtor bankrupt forthwith if no composition or scheme is proposed;
  5. The first meeting of creditors may be held at the same time as the public examination or at any other given time fixed by the Official Receive.;
  6. Notice of subsequent meetings need not be sent to creditors whose claims do not exceed Shs 40;
  7. A single dividend is paid, if possible, within six months of the first meeting of creditors;
  8. Simpler accounts are required;
  9. Costs, other than a solicitors', need not be taxed, unless required by the O.R.;
  10. The court's consent is not required to disclaim leases not sublet or mortgaged.
Posted Date: 12/13/2012 1:24:04 AM | Location : United States







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

Write discussion on Small bankruptcies-bankruptcy and liquidation
Your posts are moderated
Related Questions
Q. Describe about Trade Test? With a view of perform the work in a trade an artisan staff should have the skill required for the trade and for this Railway workers classificati

Mr. Surya does not keep a systematic record of his transactions. He is able to give you the following information regarding his assets and liabilities. 2000 2001 Dec. 31 Dec. 3

CHARACTERISTICS OF PARTNERSHIP

Illustrations of Dissolutions X, Y and Z have been trading as partners sharing profits and losses in the ratio of 2:2:1 on the 1st July 2005, they decided to dissolve the partn

In the context of the public sector, discuss incremental system of budgeting and evaluate their strengths and weaknesses

what is recorded sales on account of 3,280

Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 1.7*(9% - 1%)

Pre-acquisition dividends Pre-acquisition dividends may also arise in the following situations; 1 ) Where the holding company acquires the subsidiary company’s shares cum-div

GoFlo is a small growing firm that is considering the purchase of another truck to serve GoFlo's expanding customer base. The new truck will cost $21,000 and should generate annual

Presentations of Financial Statements The objective is to give guidance regarding the preparation of published financial statements and prescribe the content of the published fin