Lismore (Trustee in Bankruptcy of Davey) v Davey and others: consideration of s 256A of the Insolvency (Northern Ireland) Order 1989 and the three-year ‘use it or lose’ it provision

CRI_2016_V09_Iss1_Feb_cover_lowIn this article, Beverley Lambert a consultant lawyer at Scott-Moncrieff & Associates Ltd looks at the case of Lismore (Trustee in Bankruptcy of Davey) v Davey and others [2014] NICh 2 (a Northern Irish case).

The key points arising from this article include:

  • ––Upon the making of a bankruptcy order, all the bankrupt’s assets automatically vest in his or her trustee in bankruptcy without the need for any formal assignment.
  • ––A trustee in bankruptcy has three years from the date of the bankruptcy order to realise his interest or apply for an order for sale of the bankrupt’s property pursuant to 256A Insolvency (Northern Ireland) Order 1989 (‘the Order’) and the equivalent s 283A of the Insolvency Act 1986 (IA 1986).
  • ––A trustee has five options if he is to realise his interest in the property, including making application for possession of the property or applying to the court for an extension of time pursuant to Art 286 in Chapter IV of the Order and s 283(6) of IA 1986.
  • ––If a trustee in bankruptcy does not realise his interest or make application for an order for sale, the property will automatically revert back to the bankrupt without the need for any formal assignment.

Click here to download the article.

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