What is Section 339 of the Insolvency Act 1986?

Section 339 of the Insolvency Act 1986 can be used by the Insolvency Practitioner to issue legal proceedings for compensation following when company assets and property has been transferred within two years (and in some cases up to five years) of the commencement of insolvency of an individual at an undervalue.

Can a guarantee be a transaction at an undervalue?

A guarantee could be set aside as a transaction at an undervalue. There is no equivalent defence available to an individual. A guarantee is the type of transaction which is particularly vulnerable to challenge as a transaction at an undervalue.

What is an insolvency policy?

The Insolvency Act indemnity policy has been specifically designed for the situation where a dwelling-house or flat has been given away or transferred at less than its true value, or where part of the purchase price, typically the deposit, has been provided by someone other than the buyer.

What is a preference in insolvency?

A potential “preference” occurs when a company pays a specific creditor or group of creditors(s) and by doing so makes that creditor “better off” than the majority of other creditors, before going into a formal insolvency like administration or liquidation.

What is the difference between insolvency and sequestration?

The term “liquidation” refers to the bankruptcy of a company or close corporation and certain other legal entities. “The term “sequestration”refers to the bankruptcy of a natural person or a trust. “Surrender of estate” refers to the process where a natural person asks a court to declare him insolvent.

What is bond in liquidation?

A liquidation bond is a bond of security or a suretyship. It guarantees that the liquidator or trustee will provide proper administration and accounting for all funds and property of the company or estate under their administration.

What is an unqualified certificate of title?

In the event that the landlord is absent and a receipt cannot be obtained then the solicitor may proceed if he is satisfied that this is common practice in the area and that the seller has confirmed that no breaches of the lease (other than the covenant to pay rent) have been committed and that the solicitor is …