LPC Law Notes Insolvency and Liquidation Notes
A collection of the best Insolvency and Liquidation notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor". In short these are what we believe to be the strongest set of Insolvency and Liquidation notes available in the UK this year. This collection is ful...
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Advise on circumstances in which a D can be become bankrupt
Personal insolvency = ‘bankruptcy’; applies only to indiv s.265 IA86
- Any person domiciled in England and Wales and who is personally present in E&W on day bankruptcy petition is presented; or
- Any person who has in the land 3 years ending on day petition presented:
- has a place of residence or has been ordinarily resident in E&W; or
- has carried on business in E&W
Aim to encourage entrepreneurship by allowing honest bankrupts to be discharged after one year or less with a clean slate, while punishing reckless by imposing restrictions for up to 15yrs.
When is an indiv insolvent? | IA 1986 contains 2 tests (s.267(2)) based on whether able to pay debts:
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How can creditor prove debtor insolvent? | Three ways creditor may show debtor insolvent and so force bankruptcy (s.268):
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Insolvent debtor’s options? |
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Bankruptcy is a judicial process during which court passes all assets to an official – the trustee in bankruptcy – to pay off as many debts as poss. Once done, bankrupt will usually be discharged, free from almost al debts and able to start afresh.
Can visit Official Receiver’s Office for discharge or auto discharge after one year (IA s.279)
The bankruptcy process
Step 1: petition | Commenced by presentation to Official Receiver of petition by debtor, any creditor or various others listed in s.264. If petition granted, bankruptcy order is made. |
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Creditor’s petition s.267 | Creditor may petition if debtor owes his 750 or more. Must also be able to claim that debtor is unable to pay debt or has little prospect of being able to s.267(2)(c). Will be presumed if follows one of the methods in s.268 (above).
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Debtor’s petition s.272 | - Must allege he cannot pay his debts (IA s.272(1)), accompanied by statement giving details of creditors, debts, liabilities and assets. - Must not abuse process (e.g. cannot withdraw petition once made, without leave of court s.266) -> places responsibility for his financial affairs into hands of trustee in bankruptcy |
Step 2: the order | Where creditor’s petition before court, order will usually be granted if court satisfied the debt is either:
Court can dismiss petition if satisfied either:
If debtor’s petition, court won’t make order immediately if:
Under changes by the EA, aim for general discharge period to be one year. However, may be reduced if OR states that further investigation into bankrupt’s conduct is unnecessary or has been concluded (s.279) |
Role of the Official Receiver | Initially takes control bankrupt’s property when order made. Will:
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Role of trustee in bankruptcy |
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Bankrupt’s property |
Matrimonial home
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Buy the full version of these notes or essay plans and more in our Insolvency and Liquidation Notes.
A collection of the best Insolvency and Liquidation notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor". In short these are what we believe to be the strongest set of Insolvency and Liquidation notes available in the UK this year. This collection is ful...
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