Certificate of Summary Administration

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Certificate of Summary Administration

Solution Certificate of Summary Administration

Having a Certificate of Summary Administration simplifies the whole bankruptcy procedure and also keeps the costs down. It means that an Official Receiver will administer the bankrupt’s affairs and normally proceed without investigation, although he has the power to do so.

For the debtor the most important factor of a Summary Administration is that the order will be discharged after two years instead of the usual three years.

BE WARNED. A Certificate of Summary Administration can be revoked if it is subsequently found to have been issued wrongly.

When Summary Administration is Not Applicable

When a Certificate of Summary Administration cannot be issued, e.g. when the debts exceed £20,000, the Official Receiver will decide whether a meeting of the creditors needs to be called. And if one is called, a Trustee will be appointed. A creditors’ committee may also be formed to assist the Trustee.

The main difference between the Summary Administration and this procedure is that the creditors’ meeting guides the Trustee. This can in turn make the whole process slower and more expensive.

If no creditors’ meeting is held or Trustee appointed then the Official Receiver will become the Trustee.

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Article details

Article ID:	91
Category:	Debt
Date added:	15-02-2009 07:15:55
Views:	127
Rating (Votes):	(0)

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