|Bankruptcy: summary administration|
There are special regulations relating to what are known as small bankruptcies. These arc when the total assets are not likely to exceed £3(X). Some of the differences are: (1) advertising is reduced; (2) notices are only sent to creditors whose debts are over £2; (3) there is no committee of inspection; (4) adjudication is made forthwith if no composition is proposed or approved; (5) the official receiver acts as trustee unless the creditors object (if they do object, the bankruptcy ceases to be i small bankruptcy); (6) the estate is normally distributed in one dividend after six months. There are provisions for even smaller insolvencies where the estate is less than ler insolvencies where the estate is less than on application by a creditor.
|Reference: The Penguin Business Dictionary, 3rd edt.|