Bankruptcy Act, 1988

Offer of composition.

(cf. 1857, ss. 149, 150 in pt.; 1872, s. 61)

39.—(1) Where a stay on the realisation of the estate of a bankrupt has been granted under section 38 , the bankrupt shall call a meeting of his creditors before the Court for the purpose of making an offer of composition to them.

(2) At least ten days before the meeting a notice of the meeting specifying the precise offer of composition to be made shall be inserted in Iris Oifigiúil and shall also be sent by post to each creditor at his last known address.

(3) If an offer of composition is made by or on behalf of the bankrupt and three-fifths in number and value of the creditors voting at the meeting, either in person or by an agent authorised in writing in that behalf, accept the offer or any modification of it, it shall be deemed to be accepted, and when approved by the Court shall be binding on all creditors of the bankrupt.

(4) A creditor whose debt is less than £100 shall not be entitled to vote.

(5) If for any reason the bankrupt has not filed a statement of his affairs as required by section 19 (c), he shall do so at or before the meeting.

(6) Debts may be proved at the meeting.