Property transferred before bankruptcy, Financial Accounting

Assignment Help:

PROPERTY TRANSFERRED BEFORE BANKRUPTCY

(a) Voluntary settlements:
The trustee can claim all property settled by the bankrupt on other persons within two years preceding the bankruptcy

(b) Agreements to settle property:
The trustee is not bound by such an agreement if it remains executory. If property has already been settled, the trustee can recover it

(c) Fraudulent preferences:
The trustee can set aside any transaction effected within the six months preceding the presentation of the petition in circumstances such as to make it a fraudulent preference, i.e., a voluntary transaction by an insolvent person in favour of a creditor, or his trustee, with the dominant intention of giving the creditor or a surety, a preference over the other creditors.

(d) Fraudulent conveyances:
The trustee may set aside a transfer of property made by the bankrupt before the commencement of bankruptcy with the intention of defrauding creditors, unless the transferee took the property for good or valuable consideration, in good faith and without notice of that intent.

The trustee cannot recover property in any of the above cases which has been further transferred to a person taking in good faith and for value.


Related Discussions:- Property transferred before bankruptcy

Fair value adjustments, explain the purpose and circumstances of using fair...

explain the purpose and circumstances of using fair values in preparing consolidated financial statements

Prior period adjustments, Q. Prior period adjustments a. may only increase ...

Q. Prior period adjustments a. may only increase retained earnings. b. may only decrease retained earnings. c. may either increase or decrease retained earnings. d. do not affect r

Determine the growth rate of the nominal money supply, The income elasticit...

The income elasticity of money demand is 2/3. Real income is expected to grow by 4.5% over the next year, and the real interest rate is expected to remain constant over the next ye

Explain the rules of debits and credits, A classmate is considering droppin...

A classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits and credits. Explain the rules of debits and credits in a wa

Work sheet, Q : The Trial Balance of Dephane Main Fashion Center contained ...

Q : The Trial Balance of Dephane Main Fashion Center contained the following accounts at November, 30 the end of the company fiscal year. Dephane Main Fashion Center Trial Balanc

The three certainties-express trusts-trust laws and accounts, The three cer...

The three certainties A trust will be valid only if the three certainties are present i.e. certainty of words, certainty of subject, and certainty of objects.   1. Certainty

Binary coded decimal, Binary Coded Decimal BCD stands for Binary Coded ...

Binary Coded Decimal BCD stands for Binary Coded Decimal. The information given to the computer is stored temporarily before it is processed.  Consider a number 827. The bin

Show example of internal rate of return, Q. Show example of Internal rate o...

Q. Show example of Internal rate of return? IRR (Internal rate of return) is a discounted cash flow investment appraisal method that calculates the discount rate which causes th

consignment account, A of surat consigns goods to B of jaipur to be sold ...

A of surat consigns goods to B of jaipur to be sold at or above invoice price.B is entitled to get a commission of 8% on sales at invoice price plus 25% of any surplus price reali

Determine mutually exclusive projects - profitability index, 1. What is the...

1. What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years? 2. Using the profitability index, which of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd