ADMS 2610 Lecture Notes - Lecture 9: Official Receiver, Unsecured Creditor, Fraudulent Conveyance
2 May 2017
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Document Summary
Divide assets of bankrupt debtor in a fair manner to creditors. Rehabilitation of the debtor (ability to start again) Helps to a degree protect unsecured creditors. Distinguish between honest and unfortunate debtor and the debtor who is fraudulent or deceptive. Creditor would literally break the workers bench. Act amended several times, the last being 1992. The inability of a person to pay their debts as they fall due. A condition that arises when a person commits an act of bankruptcy under the. Act: debtor has debts in excess of ; and, debtor has committed an act of bankruptcy; and, a creditor has filed a petition in bankruptcy against the debtor; or, debtor has voluntarily assigned self into bankruptcy. Insolvency and bankruptcy have legal and financial definitions. Legally - insolvency represents a financial condition that precedes bankruptcy: only one of 10 possible conditions that can trigger bankruptcy but most common. Provide honest unfortunate debtors with a release from their debts.
