Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy for Individuals and Partnership Firms

After administering and distributing the estate of bankrupt Mr. Sanjay Verma, the bankruptcy trustee convenes a meeting of the committee of creditors and presents a report of the administration. Within what time must the committee approve this report, and what else must it decide?

The committee of creditors must approve the trustee's administration report within seven days of receiving it and must determine whether the bankruptcy trustee should be released under section 148. The seven-day period and the release decision are both set by section 137(3).

  1. AWithin seven days of receipt of the report; and whether the trustee should be released under section 148Correct
  2. BWithin fourteen days of receipt of the report; and whether the trustee should be released under section 148
  3. CWithin seven days of receipt of the report; and whether the bankrupt should be discharged
  4. DWithin thirty days of the meeting; and how the trustee's fees are to be fixed

Explanation

Section 137(3) requires the committee of creditors to approve the trustee's report within seven days of receiving it. It must also determine whether the trustee should be released under section 148. Fourteen days or discharge of the bankrupt are not what this provision states.

Did you get it right without looking?

One question tells you little. A timed set on Bankruptcy for Individuals and Partnership Firms shows your real accuracy, how long you take and where you lose marks.

Practise Bankruptcy for Individuals and Partnership FirmsFree diagnostic mock

More Bankruptcy for Individuals and Partnership Firms questions