12 Questions
What is one of the options available to a person who cannot pay their debts?
Bankruptcy
Which legislation amended the Insolvency Act 1986?
Enterprise Act 2002
When is a person considered 'insolvent' for bankruptcy to be relevant?
When they have debts payable immediately and lack sufficient funds to pay them
What is the role of the Official Receiver in bankruptcy?
Become Trustee in Bankruptcy (TiB)
What may remain in place for up to 15 years after a person is discharged from bankruptcy?
Bankruptcy Relief Order (BRO)
How does the bankruptcy process typically start?
With a Creditor(s)’ petition to the court
What is the minimum amount an unsecured creditor must be owed to petition for bankruptcy?
£5,000 or more
How long is the typical 'Debt Relief Order' period for a debtor with small liabilities and assets?
12 months
When must the debtor submit a 'statement of affairs' to the Official Receiver?
Within 21 days of the bankruptcy order
Who can demand a creditors' meeting if the Official Receiver does not call for one?
Creditors representing 25% or more of the debtor's liability
What does the Official Receiver do after taking control of a debtor's assets?
Appoint a trustee in bankruptcy
What is NOT considered part of the bankrupt's estate that automatically vests in the trustee in bankruptcy?
High-value furniture
Learn about the different options available to individuals who are unable to pay their debts, including bankruptcy, Individual Voluntary Arrangements (IVA), debt relief orders, and the Debt Respite Scheme. Understand the reasons why a person may find themselves in debt, such as business failure.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
