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
Example of Short-term Solvency                           Current Ratio = Current Assets / Current Liabilities                                                = 5.38

Suppose that the risk-free rate is 7% and that the market risk premium is 7%. What is the needed rate of return on a stock with a beta of 1.2? What is the needed rate of retu

Define reasons that influence a firm's degree of transaction exposure? What reasons influence a firm's degree of ‘transaction exposure' in a certain currency? For each reason d

1. The acceptance of a capital budgeting project is usually evaluated on its own merits. That is, capital budgeting decisions are treated separately from capital structure decision

1. Lease vs. Buy Trasky Company is trying to decide whether it should purchase or lease a new automated machine to be used in the production of a new product. If purchased, the

The comparative balance sheets for 2013 and 2012 are given below for Surmise Company. Net income for 2013 was $80 million. SURMISE COMPANY Comparative Balance Sheets December 31, 2

The enhancing qualitative characteristic of understand ability means that information should be understood by a those who are experts int eh interpretation of financial information

Question : The subsequent data pertain to a shop. The owner has made following sales forecasts for the first 5 months of the coming year.

The company incurs a payroll payable of $645 per weekday of operations. The mondays of january are the 3rd, 10th, 17th, 24th, and the 31st. Paydays are every other Friday with payd

Q. Show the nature of business operations? The nature of business operations that influences the proportion of fixed costs to total costs. Capital intensive business operations