| Commentary

165 Property held by bankrupt as trustee

| Commentary

165 Property held by bankrupt as trustee

Property which the bankrupt holds on trust for another person or persons does not fall within his estate for bankruptcy purposes1. For example, the client account of a bankrupt solicitor is property held by the bankrupt on trust for another, and so does not vest in the trustee in bankruptcy2. The beneficial interest in such property does not belong to the bankrupt, and it is not, therefore, property which, according to the general principles of bankruptcy law, could be divisible among his creditors3. When a bankrupt holds property on trust both for himself

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial