Formulating a petition

The committee discussed the proposal of closing the gap between Debt Arrangement Orders(DAOs) and full Bankruptcy in order to cater for bankrupts who qualified neither for bankruptcy nor a DAO. The committee welcomed the development of ‘Liquidation of Assets’ as a third option.

The sub-committee was promoted to deal with the question of initiation quickly.

Bankruptcy deposits

The committee found the fee of £50 to be too high, and suggested reducing it to £10. Mr Millett pointed out to the lack of certainty of what would follow from the initiation stage, which could deter people from presenting petitions.

The Receiving Order

The committee discussed the need for certainty as to when moneys would be paid back. A relevant date should be set following adjudication. It was expressed that the phrase ‘Receiving Orders’ had to be removed, as the phrase simply meant bankruptcy to most people.

Future meetings of creditors

The committee was split regarding the question of whether a debtor should be allowed to attend creditor meetings. The complete exclusion of debtors from creditor meetings was undesirable to some, while it was seen as a necessity for creditors in order to discuss matters without restraint.

Others expressed the need to avoid arguments in creditor meetings, which the presence of debtors could lead to. The general view of the committee was that there should be a compromise, where a debtor would be allowed to attend a part of the meeting, and dismissed during other parts. His/her presence in the building while the meeting is taking place was thought to be desirable.

Trustees

It was agreed that creditors should not be appointed as trustees in bankruptcy. The a trustee generally needs to to be a member of an organisation with a code of ethics was emphasised, yet the committee expressed that different cases required different skills. There also needs to be some sort of harmonisation between the procedure of appointing a trustee in winding -up cases, where the Court appoints the liquidator, and in bankruptcy, where the Department appoints the trustee .

Public examination

The committee emphasised the need for public examination following adjudication, with an option to dispense with it in appropriate cases where there is no need for it.

The issues regarding the property which does not pass to the trustee were also considered (please refer to Meeting 35 for more details).

Meeting30 - 16th May 1979