2. Bankruptcy Application and Procedures
29 Questions
3 Views

2. Bankruptcy Application and Procedures

Created by
@AffordableAlbuquerque2438

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary role of the Official Assignee in the bankruptcy process?

  • To manage the property of the bankrupt and assist in its recovery. (correct)
  • To prepare all legal documents for the debtor.
  • To handle the communication between the court and the bankrupt.
  • To represent the interests of creditors during proceedings.
  • Which statement accurately describes the conditions under which an Interim Order may be granted for an Individual Voluntary Arrangement?

  • The nominee must have prior experience in bankruptcy law.
  • The application must be made within a month of bankruptcy proceedings.
  • The debtor must already be discharged from previous bankruptcies.
  • The debtor intends to propose a Voluntary Arrangement that can be supervised. (correct)
  • What is the deadline for filing Proof of Debt after a bankruptcy order is made?

  • 3 months after the bankruptcy order.
  • 4 months after the bankruptcy order. (correct)
  • 2 months after the bankruptcy order.
  • 6 months after the bankruptcy order.
  • Which of the following statements correctly describes the statutory restrictions placed on bankrupts under the IRDA?

    <p>Bankrupts are prohibited from starting a new business without consent.</p> Signup and view all the answers

    Which action is part of a bankrupt's duties as per the IRDA?

    <p>To assist the Official Assignee in identifying and recovering their property.</p> Signup and view all the answers

    What happens to the interim order if a creditor's meeting is summoned?

    <p>It will be extended.</p> Signup and view all the answers

    What is the maximum total liability a debtor can have to qualify for the Debt Repayment Scheme (DRS)?

    <p>S$150,000.00</p> Signup and view all the answers

    Which of the following conditions disqualifies a debtor from entering into a Debt Repayment Scheme within 5 years before applying for bankruptcy?

    <p>Participating in a voluntary arrangement.</p> Signup and view all the answers

    What does the moratorium during the DRS implementation protect?

    <p>The right of any secured creditor to deal with their security.</p> Signup and view all the answers

    What is one requirement for a debtor under the DRS concerning previous arrangements?

    <p>They must not have had any debt repayment scheme within the last five years.</p> Signup and view all the answers

    Who must be appointed as the trustee in bankruptcy unless the Official Assignee determines otherwise?

    <p>A private trustee.</p> Signup and view all the answers

    Which factor is NOT considered when determining the trustee's remuneration under IRDA Rule 47?

    <p>Duration of the case.</p> Signup and view all the answers

    What is the role of the nominee after the creditors' meeting regarding the debtor's proposal?

    <p>To report to the Court on the creditors' approval status.</p> Signup and view all the answers

    What must be true for a bankrupt's property to vest in the Official Assignee (OA)?

    <p>The individual must be declared bankrupt.</p> Signup and view all the answers

    Which section of the IRDA discusses the annulment of bankruptcy by the court?

    <p>s392</p> Signup and view all the answers

    What is a condition that the court may impose upon the discharge of a bankrupt?

    <p>Ongoing income disclosure.</p> Signup and view all the answers

    Which provision allows for the possibility of discharge by certificate of the Official Assignee?

    <p>s395</p> Signup and view all the answers

    When may an Official Assignee declare dividends to creditors?

    <p>When sufficient funds are available.</p> Signup and view all the answers

    What is one way a bankrupt may cease being bankrupt according to the IRDA?

    <p>Composition or scheme of arrangement.</p> Signup and view all the answers

    What can the Official Assignee do if they cannot realize sufficient funds from the estate?

    <p>Bring the administration to an end without unnecessary delay.</p> Signup and view all the answers

    Under which section may the court refuse to discharge a bankrupt from bankruptcy?

    <p>s394</p> Signup and view all the answers

    Which of the following conditions must be met for a creditor to apply for a bankruptcy order under the IRDA?

    <p>The debt must be for a liquidated sum payable immediately to the creditor.</p> Signup and view all the answers

    Under what circumstance can a debtor apply for a bankruptcy order as per s308 of the IRDA?

    <p>The total debt owed must be at least S$15,000.</p> Signup and view all the answers

    What is the presumption related to a debtor's inability to pay debts under the IRDA?

    <p>The presumption arises when a debtor fails to make payment within 21 days of receiving a statutory demand.</p> Signup and view all the answers

    What is required for debts incurred outside Singapore to be included in a bankruptcy application?

    <p>The debt must be enforceable in Singapore by virtue of a judgment or award.</p> Signup and view all the answers

    In which scenario can a creditor seek an expedited bankruptcy procedure according to s314 IRDA?

    <p>If the creditor files the application before the 21-day deadline without a statutory demand.</p> Signup and view all the answers

    Which of the following is NOT a ground for making a bankruptcy application under s311 of the IRDA?

    <p>The debtor is required to have a Singapore bank account.</p> Signup and view all the answers

    What does the IRDA specify about a debtor's residence when determining bankruptcy jurisdiction?

    <p>The debtor must be ordinarily resident in Singapore for at least one year prior to the application.</p> Signup and view all the answers

    Which of the following is true regarding the debt amount needed for a bankruptcy application?

    <p>The total amount of debt must not be less than S$15,000.</p> Signup and view all the answers

    Study Notes

    Bankruptcy Application

    • A bankruptcy order may be made by a creditor or the debtor.
    • A creditor's application is governed by Section 307 of the IRDA.
    • A debtor's application is governed by Section 308 of the IRDA.

    Grounds for Bankruptcy Application

    • The debt or aggregate debt must not be less than S$15,000.
    • The debt must be liquidated and payable immediately.
    • The debtor must be unable to pay debts.
    • A statutory demand can be used to establish the debtor's inability to pay debts.
    • If the debtor fails to make payment within 21 days of receiving the statutory demand, a statutory demand will create a presumption of inability to pay debts.
    • If the debt was incurred outside of Singapore, it must be actionable in Singapore.

    Statutory Demand

    • The form, required information, and service methods for a statutory demand are outlined in IRDA Rules 73, 64, 65, and 66.
    • Rule 67 provides the procedure for setting aside a statutory demand.

    Expedited Bankruptcy Application

    • A creditor can file a bankruptcy application before the 21-day statutory demand period expires if:
      • There's a risk that the debtor's assets or value of assets will diminish, and
      • The application contains a statement to that effect.

    Effects of Bankruptcy Order

    • The bankruptcy order will be advertised and published in the Gazette.
    • The order takes effect on the date it's made against the debtor and continues until they are discharged.
    • The bankrupt's property vests in the Official Assignee.
    • Creditors have four months to file proof of debt.

    Bankrupt's Duties

    • The bankrupt must assist the Official Assignee in identifying and recovering estate assets.
    • The bankrupt must file a Statement of Affairs.
    • The bankrupt must submit accounts as directed by the Official Assignee.

    Bankrupt's Restrictions

    • Statutory restrictions apply to bankrupts, including:
      • Restrictions related to the bankrupt's property and dealings.
      • Restrictions on managing corporations.
      • Restrictions on holding certain positions.

    Alternatives to Bankruptcy

    Individual Voluntary Arrangement (IVA)

    • Allows debtors to enter binding agreements with creditors for debt repayment.
    • Avoids bankruptcy proceedings.
    • Undischarged bankrupts are ineligible for IVAs.
    • An interim order may be granted if the debtor intends to make a proposal, the nominee is acceptable, and it will facilitate consideration and implementation of the proposal.
    • The nominee will report to the court on whether the creditors approved the proposed IVA.
    • If approved, the IVA is implemented. If rejected, the debtor is discharged, and creditors can pursue other options.

    Debt Repayment Scheme (DRS)

    • Available to debtors with liabilities under S$150,000.
    • Debtors must not be bankrupt or in an IVA within five years.
    • They must not be subject to, or have been subject to, a debt repayment scheme within the past five years.
    • They cannot be sole proprietors, or partners in a firm or LLP.
    • A moratorium applies during the DRS implementation period.
    • Secured creditors are not affected by the moratorium.
    • A certificate of completion is issued once the debtor repays their debts under the plan.

    Bankruptcy Administration

    • The Official Assignee acts as receiver of the bankrupt's property and administers their affairs.
    • A private trustee may be appointed.
    • Private trustees are mandatory unless:
      • The Official Assignee considers it in the public interest, and
      • Consents to be appointed as the trustee.

    Trustee's Remuneration

    • Trustee remuneration depends on multiple factors:
      • Complexity of the case.
      • Degree of responsibility assumed by the trustee.
      • Effectiveness of the trustee's work.
      • Value and nature of estate assets.

    Order of Distribution

    • Creditors have a set order of distribution of bankrupt's property.
    • Certain avoidance provisions apply to the divisible property of the bankrupt.

    Dividend Distribution

    • The Official Assignee will declare and distribute dividends when sufficient funds are available.
    • The Official Assignee may end administration once they've realized as much of the estate as possible without needlessly prolonging the bankruptcy.

    Discharge and Annulment

    • A bankrupt can cease being a bankrupt in several ways:
      • Annulment: By the court or Official Assignee if all debts and expenses are paid or secured.
      • Composition or Scheme of Arrangement: Creditors agree to a different repayment plan.
      • Discharge: The court can discharge the bankrupt absolutely or with conditions, or refuse discharge.
      • Discharge by Certificate of Official Assignee: A differentiated framework exists for first-time bankrupts and repeat bankrupts.

    Discharge Through the Official Assignee

    • The Official Assignee can issue a discharge certificate with conditions, such as meeting a target contribution.
    • Creditors can object to the discharge.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Description

    Test your knowledge on bankruptcy applications under the IRDA, including creditor and debtor procedures. Explore grounds for applications, statutory demands, and regulations guiding the process. Perfect for those studying bankruptcy law and its implications.

    More Like This

    Bankruptcy Law Cases Quiz
    24 questions
    Bankruptcy Law Quiz
    4 questions
    Bankruptcy Law Quiz
    4 questions
    Use Quizgecko on...
    Browser
    Browser