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Directorship and bankruptcy
Comments
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scenario one, yes that is right if all the debts and bankruptcy fees are paid from the asset you will get the rest back
Try this example. Say your debts are £100,000 and your shares are only with a few pounds now. The OR could in theory keep the shares for say 10 years until the shares are worth £100,000 and cash them in the to pay all the debts.
The OR may choose to sell them sooner, they will do what they think is best to get the best return
And common practice is ? with smal private ltd. companies
your example ... my guess is i will be given IPA/O to pay the debts and they all will be "SATISFIED" or "PARTIALLY SATISFIED" on the date of discharge and there is no need to draw on assets after discharge or IPA/O expiry because there are legally no debts. so what would OR use that 100k for after 10 yrs ?0 -
no, your liability for the debts finishes at discharge (ie they cant take anything new from you aprt from income from an IPO as that has a seperate law), the debts remain within the bankruptcy estate to paid out of the ongoing realisation of any assets that have been put into the bankruptcy estate no matter how long that takes.Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
when all bankruptcy estate assets have been exhausted and there are not going to be any new ones because you have been discharged, then the OR sends a final notice to the creditors, pays out a dividend and closes the case. this is entirely seperate to discharge and can happen many years after bankruptcyHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
no, your liability for the debts finishes at discharge (ie they cant take anything new from you aprt from income from an IPO as that has a seperate law), the debts remain within the bankruptcy estate to paid out of the ongoing realisation of any assets that have been put into the bankruptcy estate no matter how long that takes.
OK so during this time who legally owns the shares ?
In my case it would be better to sell my share in company before BR and buy back after ... hence not included in estate ...
I know it would take explaining ... but at this stage i can say i sold it to raise money to pay for BR ... so it is not an issue ...0 -
when all bankruptcy estate assets have been exhausted and there are not going to be any new ones because you have been discharged, then the OR sends a final notice to the creditors, pays out a dividend and closes the case. this is entirely seperate to discharge and can happen many years after bankruptcy
would bankruptee be informed about this ?0 -
All of your assets pass to the trustee with conveyance (this means it is automatic so needs no paperwork, it just happens) on the date of the bankruptcy order.
The other option that the OR has is to ask the court to restore any transactions that disposed of assets in the 5 years before the bankruptcy if the person was in solvent at the time. Again the OR would have to decide if it was worth them doing thisHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
would bankruptee be informed about this ?
Yes you get a notice at the same time, its like a simple cash flow sheet showing what has been realised and what has been paid outHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
All of your assets pass to the trustee with conveyance (this means it is automatic so needs no paperwork, it just happens) on the date of the bankruptcy order.
The other option that the OR has is to ask the court to restore any transactions that disposed of assets in the 5 years before the bankruptcy if the person was in solvent at the time. Again the OR would have to decide if it was worth them doing this
I see so it probably depends on OR and his/hers decision. and there is no straight simple answer0 -
thats right, the overall decision is what will provide the greatest return for the creditorsHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
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