Insolvency mid-sem notes

Description

Contents Week 1 ...................................................................................................................... 2 Bankruptcy (relation to a person) - Bankruptcy Act 1966 (Cth)............................ 2 A person is solvent if, and only if, the person is able to pay all the person’s debts, as and when they become due and payable. ............................................................. 3 Pari passu = pro rata .......................................................................................... 4 Current act is now Bankruptcy Act 1966 ............................................................. 5 1. Personal insolvency agreement (PIA) or Part X .................................................. 7 Voluntary 8 Week 2 ...................................................................................................................... 8 (1984) 154 CLR 589. ............................................................................................... 10 Joe Bloggs Exercise ................................................................................................ 10 Income you earn while you are bankrupt will also go to pay your creditor. ............... 10 Secured v Unsecured 11 Retention of Title ..................................................................................................... 12 ‘Nemo dat quod non habet’ – you cannot give what you do not have/own .............. 12 The proceeds of any sold ladders were to be held on trust for the 12 Compulsory 13 The debt must be at least $ 13 Connection to 13 Act of Bankruptcy .................................................................................................... 13 Week 3 .................................................................................................................... 16 c. Debt is still owing .............................................................................................. 18 Consequences of bankruptcy for the 20 o Date of bankruptcy:........................................................................................... 21 relation back ............................................................................................................ 21 BANKRUPTCY ACT 1966 - SECT 115 ....................................................................... 22 Commencement of bankruptcy ................................................................................ 22 Date of commencement of bankruptcy following debtor’s petition ............................ 23 Relation 23 BANKRUPTCY ACT 1966 - SECT 116 ....................................................................... 24 Property divisible among creditors ........................................................................... 24 Week 4 .................................................................................................................... 26 Rules and circumstances in which a trustee can set aside voidable transaction: ..... 27 Category 1: Transfers at an 27 Category 2: Transfers to defeat 28 Category 3: Preferences - Existing 28 Category 4: Orders against other 29 Week 5 30 Claims against the bankrupt 31 Enforceable claims .................................................................................................. 31 Monetary 31 Which claims are not provable? ............................................................................... 31 How do you prove a debt? ....................................................................................... 31 Exceptions to pari passu: SET 32 PRIORITY 33 Creditors who indemnify trustee’s costs of bringing the proceedings ....................... 34 FINAL EXCEPTION - SECURED 35 The end of bankruptcy ............................................................................................. 36 Multiple bankruptcies ............................................................................................... 37 Informal alternatives to bankruptcy .......................................................................... 37 Formal arrangements .............................................................................................. 38 PIA/Part 38 DA/Part IX ............................................................................................................... 40