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Bankruptcy: provable debts


These include debts or liabilities, certain or contingent, present or future, that exist either at the time of the receiving order or are likely to be incurred thereafter because of circumstances that arose before the receiving order. In particular: (I) a wife may prove for arrears of maintenance and the capitalized value of future payments; (2) where the liability is contingent the debt may be proved for where the court is of the opinion that it is capable of being estimated; (3) there are special rules with reference to rates and taxes; (4) a guarantor can prove where he has paid the debt but no two persons can prove re the same debt (therefore the creditor and the guarantor cannot both prove re the same debt); (5) with reference to a fradulent conveyance that has been avioded, the injured party may claim for the amount paid (6) statue-barred debts are not provable; (7) calls on shares may be proven for even before they are made; (8) the capitalized value of annuities may be proven for; (9)with refereance to bills of echange, the holder can prove even though the bill is not matured: so might an endorsee where the liability is contingent; (10) liquidated damages can be claimed (11) unliquidated damages may be estimated and proved for when they arise from contract or breach of trust but not when they arise from tort. Certain debts are not provable, inter alia illegal debts, e.g. gaming debts, and also debts incurred when the creditor had express or imphed notice of an available act of bankruptcy.

Reference: The Penguin Business Dictionary, 3rd edt.