VOLUNTARY BANKRUPTCY

F.ANNULMENT. PART 3 OF 6.

ANNULMENT BY COMPOSITION OR ARRANGEMENT.

Compositions and arrangements are offers made by bankrupts through their trustees to finalise their debts. The creditors vote on whether or not to accept such offers.
An Offer:
-may involve assets already in the bankruptcy.-may include other money or assets that would not normally be available to creditors, such as money provided by a relative.These offers benefit creditors as they receive a dividend that would not be otherwise available.
All creditors will receive an equal rate of dividend unless your offer provides otherwise.
Your written and signed offer must be lodged with the trustee:
-setting out the terms.-providing for the payment of the trustee's fees and expenses.
Before finalising your offer and asking your trustee to call a creditors meeting to formally consider it, you should discuss;
-the requirements for making an offer with your trustee.
-any proposed offer with major creditors to find out if it is acceptable.
Your trustee may:
-require a deposit to cover the expenses and fees of the meeting.
-refuse to call a meeting if the offer does not make adequate provision for the payment of trustee's fees that have been approved by creditors and cannot be taken out of the estate.