The following Restructuring & Insolvency Q&A Produced in partnership with XXIV Old Buildings provides comprehensive and up to date legal information covering:
This Q&A is about set-off involving transactions with the trustee.
The answer is no. The company has to prove for its claim in the bankruptcy (section 285(3) of the Insolvency Act 1986 (IA 1986)). It will be entitled to a dividend along with all other creditors in the bankruptcy. If the trustee took the claim into account when agreeing the price for the shares, the company would be being paid in full and so achieve an advantage over the other creditors.
Nonetheless, claims between a creditor and the bankrupt can be set off against each other under IA 1986, s 323. This applies ‘where before the commencement of the bankruptcy there have been mutual credits, mutual debts or other mutual dealings between the bankrupt and any creditor of the bankrupt proving or claiming to prove for a bankruptcy debt’. The object here is to do substantial justice between the parties, it being considered unfair that the creditor should be limited to a dividend in respect of his claim but obliged to meet his obligation to bankr
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
On 29 August 2015, the Prudential Regulation Authority (PRA) published the PRA Rulebook (Rulebook). The transition from the Handbook to the Rulebook was intended to benefit PRA-authorised firms, to access clearer and more concise rules. Alongside the Rulebook, supervisory statements and statements
Fraud by false representationFraud by false representation applies to a broader range of conduct than the offences under the preceding legislation (the Theft Act 1968 (TA 1968)). No gain or loss need actually be made, and no deception need operate on the mind of the deceived for the Fraud Act 2006
Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
This Practice Note looks at CE-File electronic working in the courts under CPR PD 51O, in the context of case management. It provides guidance on how to file a document electronically, deal with rejected electronic filings, issue a claim electronically, file electronic bundles (eBundles) for case
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.