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







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