Equity and Trust Case Study Example | Topics and Well Written Essays - 1000 words

Equity and Trust - Case Study ExampleIf the summarise amount owed is below 15000, then there is debt relief order (DRO) suitable for Steve and Anna, in case they do non own their own home. They prat own car valued up to 1000, but not extradite other assets preceding(prenominal) 300. Their disposable income essential also not exceed 50 a month (Bankruptcy).Steve owns a flat but he has transferred the freehold title of this flat to his son, Thomas name. Nonetheless, in case the chat up sets aside this transfer, Steve will have to sell this flat to pay up his creditors (Civil Litigation).If the total amount owed is above 15000, there is the single voluntary symmetry that can be made to a court by which Steve and Anna can propose the method of making payments to the creditors. Based on this individual voluntary agreement, the court can call a meeting of the creditors where at least 75% of the creditors or their proxies must be present. If the proffer of payment is agreeable to the creditors, then the proposals are accepted, and Steve and Anna have to honor their commitment (Bankruptcy).The individual voluntary agreement is made before bankruptcy. There is no mention of Steve and Annas source of income other than Direct vino Ltd. The individual voluntary agreement is ideal if Steve and Anna have some sources of income other than Direct Wine Ltd.Advice to EllenEllen has asked Anna and Steve to let her have a small advance from the trust fund to pay for a school trip. Ellen can profit of the fund if it is available depending on the actual amount required, under certain conditions.It does appear that Ellen has approached Steve surreptitiously for her emergency. Since Maud is alive, it is outdo to consult her for Ellens requirement. It is not ethically sound for Steve to go ahead and be a privy to Ellens requirement when the main trustee is alive. The money is there. It is only a question of proprietary (Establishing a Trust Fund).Advice to rapid Loans Lt dThere is no information on the status of the impart repayments by Steve and Anna after having taken the add of 100,000. Also, there is a balance amount of 50,000 lying in the loan account of Direct Wine Ltd. This could mean two things. One, it could mean that the equipment purchased did not amount to more than 50,000. Or it could mean that Steve and Anna have not honored the banks advice to use the full amount on purchase of the equipment required by them. At whatever rate, even if Steve and Anna are regular in paying the loan installments, the bank must take scholarship of the fact that Steve and Anna have declared for insolvent liquidation.Quick Loans Ltd can start the process of recovering their loan amount by directly addressing Steve and Anna. They can join up with the rest of the creditors in due course.At this stage much depends on how Steve and Anna proceed to make repayment commitments. Having declared themselves as insolvent, Steve and Anna have the option to approac h the courts for relief in case required.For the moment, Quick Loans Ltd are out on a limb. They must proceed carefully. It does appear that Steve and Anna mean to make payment. However, the payment amount may be initially