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Processing of Creditor'S Claims Against Bankrypts Estate: Division 20 Section 215 - 245 Insolvency Bill 2015

The document outlines the process for creditors to submit claims against a bankrupt estate under the proposed Insolvency Bill 2015. Creditors must submit a claim form to the bankruptcy trustee before the specified deadline, providing details of the debt and adhering to formalities. The trustee will then examine the claim and either allow or disallow it, with allowed claims becoming provable debts against the estate. Certain fines, penalties or debts incurred after commencement of bankruptcy are not provable.

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38 views

Processing of Creditor'S Claims Against Bankrypts Estate: Division 20 Section 215 - 245 Insolvency Bill 2015

The document outlines the process for creditors to submit claims against a bankrupt estate under the proposed Insolvency Bill 2015. Creditors must submit a claim form to the bankruptcy trustee before the specified deadline, providing details of the debt and adhering to formalities. The trustee will then examine the claim and either allow or disallow it, with allowed claims becoming provable debts against the estate. Certain fines, penalties or debts incurred after commencement of bankruptcy are not provable.

Uploaded by

pauline1988
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PROCESSING OF CREDITORS

CLAIMS AGAINST BANKRYPTS


ESTATE
Division 20 section 215 -245
Insolvency Bill 2015

WHAT DOES THIS ENTAIL?


Firstly a creditors claim is a
document that a creditor submits to
the bankruptcy trustee for the
purpose of proving a debt .
A debt , therefore is proved when it is
allowed by the bankruptcy trustee.

What debts are provable?


What is a debt ?
Those that are incurred during the
commencement of the bankruptcy.
After the commencement but before
the discharge, because of an
obligation incurred by the bankrupt
before that commencement.

Debts that cannot be


proved.
A fine , penalty or other made by a
court ordering the payment of money
that has been made following a
conviction
Such debts are not provable
And those debts incurred during the
commencement of the bankrupt and
are not discharged when the
bankrupt is discharged from
bankruptcy. [ examples ]

What is the procedure for proving


such debts ?

1. creditor to submit a claim form

A creditor including a creditor who has a preferential


claim who shall submit shall claim to the bankruptcy
trustee. This is done before a certain deadline
This deadline may be,
(a) the time specified by the bankruptcy trustee in
notice given to the creditor
(b) the time specified in an advertisement published
by the bankruptcy trustee in a newspaper

What then is required by the


creditor
The creditor is required to adhere to
any prescribed formalities.
He is also unless the Court make an
order to such, bear all costs incurred
as a result
The creditor may also amend or
withdraw the claim ,but an amended
claim has to comply with formalities
prescribed for the original claim.

Examination of the claim


2. Bankruptcy trustee is required to
examine creditors claim.

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