-
11.
*
the present requirement that a bankrupt must apply to the Court for discharge from bankruptcy will be repealed and provisions will be introduced for an automatic discharge, subject to there being no objections from the trustee of the bankrupt's estate or any creditor;
the present procedures for compromises or schemes of arrangement that a debtor can make with his creditors will be replaced by new provisions based on the individual voluntary arrangements procedures under the UK Insolvency Act. These provide a more flexible procedure which will encourage debtors to sort out their financial difficulties in a structured way without having to become bankrupt;
arrangements for holding meetings of creditors will be made more flexible and the Official Receiver given greater discretion to determine the need for such meetings;
the present monetary limits of $3,000 on the total value of tools of trade and domestic goods that a bankrupt can retain will be abolished. The bankrupt will instead be allowed to retain such equipment as will enable him to continue his trade or occupation so as to earn a reasonable living for himself and his dependants. Excess earnings will continue to be paid into the bankrupt's estate. The bankrupt will be able to retain such domestic equipment as may be necessary for satisfying his and his family's basic needs; and
new "anti-avoidance" provisions will be introduced to enable the trustee of the bankrupt's estate to challenge disposals of property made prior to the commencement of the bankruptcy, when the trustee considers the bankrupt may have acted contrary to the interests of his estate by conferring benefits on some other persons.
This Bill also generally will streamline the procedures associated with insolvencies and will help to reduce the time and costs involved in their administration.
Thank you, Mr President.
End