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

Discuss the advantages, Discuss the advantages and disadvantages of differe...

Discuss the advantages and disadvantages of different types of financing: 1. Issuing bonds 2. Borrowing from Bank 3. Equity financing

Budgeted purification fixed, XYZ Municipality purifies water before it ente...

XYZ Municipality purifies water before it enters the reticulation network. There are presently 3 purification processes available to the municipality. These processes sre referred

Estimate unconditional and conditional default probability, XYZ Inc. whose ...

XYZ Inc. whose stock is currently valued at $125/share with an implied volatility of 40% has debt of $80/share. a. Assuming a global recovery rate of 50% and a standard deviatio

Determine the present value - annuity, Assume you are receiving an amount ...

Assume you are receiving an amount of Rs.5000 twice in a year for subsequent five years one time at the starting of the year and another amount of Rs. 5000 at the ending of the yea

The opening entries-executorship laws and accounts, The opening entries 1...

The opening entries 1. Assets of the estate or trust In both cases the various assets of the estate or trust are debited to appropriate accounts and credited to the Estate Ca

What is demands for grants, Q. What is Demands For Grants? The budget p...

Q. What is Demands For Grants? The budget proposals of the expenditures to be met out from the "Consolidated fund of India" should be presented in the form of Demands for Grant

Bank reconcillation statement, cheque issued and presented for payment 400 ...

cheque issued and presented for payment 400 in cash book debit balance

Financial ratio analysis, Financial ratio analysis Financial rati...

Financial ratio analysis Financial ratio analysis is a statistical tool that measures the relationship between two financial figures. It invol

First meeting of creditors-public examination, First Meeting of creditors ...

First Meeting of creditors The Official Receiver must convene this meeting within 60 days of the receiving order, unless the court extends the time, by giving notice to each c

System x is judged to have high risk, Allied Managed Care Company is evalua...

Allied Managed Care Company is evaluating two different computer systems for handling provider claims. There are no incremental revenues attached to the projects, so the decision

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