Any insolvency lawyers or IPs here...?
Discussion
Whilst I dabble in basic insolvency, it's really only as an adjunct to my litigation practice in the context of enforcement from time to time.
A friend is considering petitioning for his own bankruptcy and asked me a question assuming that as a lawyer I would know the answer. On the face of it, it's a relatively simple question but I'm a touch embarrassed to say that I don't know the answer!
So, I'll throw it open to anyone here with a greater familiarity with the Insolvency Rules than me:
If a creditor fails to prove in the bankruptcy (deliberately, in this case), what is the status of the debt once the bankrupt is discharged? Is it swept up with all debts for which proofs of debt are lodged and so effectively written off on discharge? Or does the bankruptcy only bite on those debts that were proved for?
I'm off to plough through the Rules but if anyone can answer it and save me the brain-ache, it would be much appreciated!
A friend is considering petitioning for his own bankruptcy and asked me a question assuming that as a lawyer I would know the answer. On the face of it, it's a relatively simple question but I'm a touch embarrassed to say that I don't know the answer!
So, I'll throw it open to anyone here with a greater familiarity with the Insolvency Rules than me:
If a creditor fails to prove in the bankruptcy (deliberately, in this case), what is the status of the debt once the bankrupt is discharged? Is it swept up with all debts for which proofs of debt are lodged and so effectively written off on discharge? Or does the bankruptcy only bite on those debts that were proved for?
I'm off to plough through the Rules but if anyone can answer it and save me the brain-ache, it would be much appreciated!
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