Insolvency: A practical legal handbook for managers by Peter Eales

By Peter Eales

This booklet is meant to supply a center street among the elemental scholar textual content and the heavy practitioner’s guide. It covers all points of insolvency, together with either company and personal financial disaster including the choice routes to the insolvency approach. The booklet goals to provide not just a view of the complicated felony matters met with within the box of commercial, but in addition addresses the sensible possible choices open to bancrupt borrowers and collectors. contains a new addendum take into consideration the results of the new Insolvency and company Acts.

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Sample text

With regard to the parameter of 'the carrying on of business/ s. 265(2) of the Act defines this as the 'carrying on of business by a firm or partnership of which the 37 INSOLVENCY individual is a member'. In addition, the definition widens to the 'carrying on of business by an agent or manager for the individual or for such a firm of partnership'. 436 of the Act defines 'business' in such a way that it 'includes a trade or profession'. The above definition would seem to be clear and all-embracing.

The simple reason for this is that such dispositions can only be recovered for the benefit of the creditors generally by a trustee in bankruptcy. (4) It may transpire that creditors emerge after the creditors' meeting and are thus not bound by the decisions made by the meeting since they had no notice of it in the first place. Such creditors could still proceed against the debtor and, if they are large enough, bring about the downfall of the IVA. Fortunately, creditors can still obtain VAT relief if they agree to their debts being covered by an IVA (or indeed a DOA).

The official receiver will provide the correct form to the debtor and instruct him on the correct manner of completion. If the bankrupt is incapable of completing the form he may apply to the official receiver to have someone else do it for him. In addition, the official receiver has powers within s. 288(3) to release the debtor from obligation to complete the statement of affairs or extend the time during which the form must be prepared. The official receiver may request the bankrupt to produce the last three years' accounts prior to the petition and the court may demand accounts before that time.

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