In bankruptcy A, unsecured creditors receive £0.40 in the pound. A lender is owed £250,000, of which 30% is secured against assets.
(a) Calculate:
(i) the amount received by the lender as a secured creditor
(ii) the amount received by the lender as an unsecured creditor.
In bankruptcy B:
the total liabilities are £820,000
the amount owed to secured creditors is £395,000
an unsecured creditor who is owed £60,000 receives £21,000
the expenses of winding up the business are £11,250.
(b) Calculate:
(i) the rate in the pound payable to unsecured creditors