Chapter 20 - Bankruptcy Law. In this chapter you should understand: the objectives of bankruptcy law, the advantages and disadvantages of bankruptcy from the perspective of the creditor and the debtor, how the Bankruptcy Act 1966 (Cwlth) is administered,. | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Bankruptcy Law Chapter 20 20- Bankruptcy Where legal possession of a debtor’s possessions is taken for the benefit of that person’s creditors. 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Objectives of Bankruptcy Law To assist the debtor: will be entitled, once discharged, to make a fresh start free from the demands of creditors. To protect creditors: by preventing debtors from disposing of property when bankruptcy is inevitable. by distributing the debtor’s assets among creditors in the swiftest and most economical manner. 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Objectives of Bankruptcy Law (cont.) To benefit the community: by giving a debtor who is hopelessly in debt an opportunity to make a new start, rather than remain a burden on the community. by imposing limits on the capacity of a person who is an undischarged bankrupt to enter new contracts. 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Advantages for Creditors Equitable and proportionate distribution of debtor’s assets. Recovery of property that was distributed prior to bankruptcy. Possibly uncover more property available for distribution to creditors by public examination. 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Disadvantages for Creditors Significant fees for administering the estate, and court costs associated with the recovery of costs, are paid before creditors. Delays and complications. Bankrupt must stop . | This is the prescribed textbook for your course. Available NOW at your campus bookstore! 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Bankruptcy Law Chapter 20 20- Bankruptcy Where legal possession of a debtor’s possessions is taken for the benefit of that person’s creditors. 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Objectives of Bankruptcy Law To assist the debtor: will be entitled, once discharged, to make a fresh start free from the demands of creditors. To protect creditors: by preventing debtors from disposing of property when bankruptcy is inevitable. by distributing the debtor’s assets among creditors in the swiftest and most economical manner. 20- Copyright © 2000 McGraw-Hill AustraliaCopyright 2009 McGraw-Hill Australia Pty Ltd PPTs t/a Fundamentals of Business Law 6e Objectives of .
