Ordinary administration bankruptcies are more complicated than summary administrations. Individuals having free and clear assets of a value in excess of $15,000.00 must file an ordinary administration. For an individual the protective legislation’s as described for a Summary Administration apply in ordinary administrations as well. Corporations are only able to file Ordinary administrations. The differences between these two types of bankruptcy, Ordinary and Summary, tend to be procedural.
The procedural differences are significant but are differences that must be managed by the licensed Insolvency Trustee. The Trustee must arrange to publish the bankruptcy in a local newspaper. A creditors meeting is mandatory and the debtor is required to be present at this meeting. The Trustee’s financial accounting must be reviewed and approved by the Court and the Trustee is usually required to physically attend this hearing. The Trustee’s discharge is not automatic but, again, must be granted by the Court. There are a number of other procedural differences but, again, these are matters that directly involve the Trustee as opposed to the debtor.
In the event you feel you may benefit from a bankruptcy administration but find that your circumstances place you in an ordinary administration, we strongly urge you to contact our office. The Trustee will meet with you personally and address your concerns.