Norrie & Daughters

Compositions

Personal Insolvency Services Auckland New Zealand

Compositions

Compositions by nature can be an expensive process.

A composition is a procedure where a bankrupt can seek to enter into a compromise with his or her creditors, which, if approved by the prescribed majority of the creditors, and the court, entitles the bankrupt to have the bankruptcy annulled.

The process normally commences with a proposal by the bankrupt to the bankrupt’s creditors to take something in satisfaction of the debts due to them. This something may be for example 10 cents on each dollar of debt. Each class of creditor must pass a special resolution accepting the composition however if this step is passed then a meeting of creditors is called to vote again on the composition. At this point the composition can be altered from that original put forward before final voting occurs.

If creditors by way of a special resolution confirm the composition (confirming resolution) then the High Court must approve the composition which will then become binding on all creditors of the bankrupt.

A deed is then drawn up in conformance with the approved composition.

It is worthy to note that when bankrupted all property of the bankrupt vests in the Official Assignee however when the bankruptcy is annulled under a composition, not all property will not necessarily be revested back to the bankrupt, the property must be dealt with in accordance with the deed.

The process is complex and not inexpensive however it has the benefit of annulling the bankruptcy and removes the conditions and restrictions placed upon bankrupts.

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Quality & Experience

  • Chartered Accountants Australia & New Zealand Accredited insolvency practitioners
  • Free 1 hour meeting to be briefed on your situation
  • Experience in all aspects of personal Insolvency
  • Sound advice on all insolvency options available
  • Preparation of application and obtaining approval for bankrupts to be in business
  • Financial supervision of bankrupts in business
  • Full range of insolvency services
  • Acted for Directors, Shareholders and Creditors against Liquidator claims

Results

  • We have successfully implemented schemes of arrangement involving significant debt including bank and tax debt and avoided the bankruptcy of the persons
  • We have got self-employed bankrupts back into business
  • We have acted for various bankrupts against claims made by the Official Assignee in various matters
  • We have successfully acted for debtors, directors and shareholders against claims by liquidators against them
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Services

  • Insolvency advice
  • No Asset Procedure
  • Summary Instalment Orders
  • Informal and Formal Compromises
  • Bankruptcy
  • Financial Supervision of Bankrupts in Business
  • Expert Witness
  • Acting for Directors, Shareholders and Creditors against Liquidator claims

To learn more about the services we offer to clients both in New Zealand and overseas

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