CII R01 UPDATED QUESTIONS AND ANSWERS GRADED A+
✔✔starter home scheme - ✔✔new build homes offered to 23-40 yo at least 20% off
market price
subject to price caps
✔✔help to buy equity loan - ✔✔Govt lends buyer 20% off cost of new build
no loan charges for first 5 years
25 year term
can only own one
must be new build
cant be more than 600k
✔✔help to buy mortgage guarantee - ✔✔offered lenders a guarantee on mortgage
loans so the lender could lend a higher percentage of the house value
✔✔bankruptcy - ✔✔takes basically all assets and shares them fairly to the creditors
applies to individuals
added to register
subject to restrictions for 12 months unless fully paid off
assets from their estate during this period can still be used to pay off debts
✔✔insolvency - ✔✔applies to companies
✔✔trustee in bankruptcy - ✔✔the official receiver or an insolvency practitioner
who takes control of the bankrupts' assets.
main duties are to sell these assets and share the money out among the creditors.
✔✔unsecured creditor - ✔✔Creditor whose claim is not supported by collateral, such as
a credit card.
✔✔individual voluntary arrangement - ✔✔IVA
alternative to bankruptcy
formal repayment plan
insolvency practitioner supervises process
creditors accounting for 75% of debt must agree to it
not subject to bankruptcy restrictions
✔✔administration order - ✔✔court collects payments and distributes them to creditors
creditors cant take any further action unless authorised by court
debt interest is frozen
court fee is added to debt
the debt is less than 5k and at least one creditor has a court order against the person
, ✔✔debt relief order - ✔✔individual must have less than 1k in assets with less than £50
a month disposable and owe less than 20k
skilled debt advisors and insolvency practitioners help individuals
longer time period but voluntary so repay more
✔✔Bankruptcy petition - ✔✔individual must owe more than 5k
firm requests individual to be made bankrupt and reasons why
creditors register to get added to the list and recieve updates and be able to vote
statement of affairs regarding income, outgoings and debt is made
✔✔bankruptcy restrictions - ✔✔cant borrow more than £500 without informing lender of
their status
cant be a company director without court permission
cant create or manage a new company without permission
cant manage a business under a different name without telling people they are bankrupt
work as an insolvency practioner
✔✔members' voluntary liquidation - ✔✔shareholders decide to put the company into
liquidation and there are enough assets to pay off the debt
✔✔creditors' voluntary liquidation - ✔✔shareholders decide to put company into
liquidation but there arent enough assets to pay all creditors
✔✔compulsary liquidation - ✔✔court orders company to wind up and petitions an
appropriate person
If there is more than one director, all the directors must jointly present the winding-up
petition.
✔✔insolvency restrictions - ✔✔restrictions on reusing same name
✔✔informal agreement - ✔✔company contacts creditors to try reach an agreement
✔✔company voluntary agreement - ✔✔directors apply to court to sort out a payment
plan
✔✔administration - ✔✔court procedure to give firm breathing room whilst they try to
salvage business as an ongoing concern, organize a voluntary agreement, get a better
realization of assets than immediate liquidation
✔✔rules for a valid will - ✔✔mental capacity to make it
over 18
must be in writing
testator or representative must sign it
2 witnesses who arent beneficiaries (or their spouses)
marriage (unless preempted) revokes the will
✔✔starter home scheme - ✔✔new build homes offered to 23-40 yo at least 20% off
market price
subject to price caps
✔✔help to buy equity loan - ✔✔Govt lends buyer 20% off cost of new build
no loan charges for first 5 years
25 year term
can only own one
must be new build
cant be more than 600k
✔✔help to buy mortgage guarantee - ✔✔offered lenders a guarantee on mortgage
loans so the lender could lend a higher percentage of the house value
✔✔bankruptcy - ✔✔takes basically all assets and shares them fairly to the creditors
applies to individuals
added to register
subject to restrictions for 12 months unless fully paid off
assets from their estate during this period can still be used to pay off debts
✔✔insolvency - ✔✔applies to companies
✔✔trustee in bankruptcy - ✔✔the official receiver or an insolvency practitioner
who takes control of the bankrupts' assets.
main duties are to sell these assets and share the money out among the creditors.
✔✔unsecured creditor - ✔✔Creditor whose claim is not supported by collateral, such as
a credit card.
✔✔individual voluntary arrangement - ✔✔IVA
alternative to bankruptcy
formal repayment plan
insolvency practitioner supervises process
creditors accounting for 75% of debt must agree to it
not subject to bankruptcy restrictions
✔✔administration order - ✔✔court collects payments and distributes them to creditors
creditors cant take any further action unless authorised by court
debt interest is frozen
court fee is added to debt
the debt is less than 5k and at least one creditor has a court order against the person
, ✔✔debt relief order - ✔✔individual must have less than 1k in assets with less than £50
a month disposable and owe less than 20k
skilled debt advisors and insolvency practitioners help individuals
longer time period but voluntary so repay more
✔✔Bankruptcy petition - ✔✔individual must owe more than 5k
firm requests individual to be made bankrupt and reasons why
creditors register to get added to the list and recieve updates and be able to vote
statement of affairs regarding income, outgoings and debt is made
✔✔bankruptcy restrictions - ✔✔cant borrow more than £500 without informing lender of
their status
cant be a company director without court permission
cant create or manage a new company without permission
cant manage a business under a different name without telling people they are bankrupt
work as an insolvency practioner
✔✔members' voluntary liquidation - ✔✔shareholders decide to put the company into
liquidation and there are enough assets to pay off the debt
✔✔creditors' voluntary liquidation - ✔✔shareholders decide to put company into
liquidation but there arent enough assets to pay all creditors
✔✔compulsary liquidation - ✔✔court orders company to wind up and petitions an
appropriate person
If there is more than one director, all the directors must jointly present the winding-up
petition.
✔✔insolvency restrictions - ✔✔restrictions on reusing same name
✔✔informal agreement - ✔✔company contacts creditors to try reach an agreement
✔✔company voluntary agreement - ✔✔directors apply to court to sort out a payment
plan
✔✔administration - ✔✔court procedure to give firm breathing room whilst they try to
salvage business as an ongoing concern, organize a voluntary agreement, get a better
realization of assets than immediate liquidation
✔✔rules for a valid will - ✔✔mental capacity to make it
over 18
must be in writing
testator or representative must sign it
2 witnesses who arent beneficiaries (or their spouses)
marriage (unless preempted) revokes the will
