Q&As

Can a discharged bankrupt (B) make an application for adverse possession of land where: B was once the registered proprietor of the land but his interest in the land was disclaimed by his Trustee in Bankruptcy during his bankruptcy, and B has remained in occupation of the land since the disclaimer for over ten years?

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Published on LexisPSL on 10/11/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Can a discharged bankrupt (B) make an application for adverse possession of land where: B was once the registered proprietor of the land but his interest in the land was disclaimed by his Trustee in Bankruptcy during his bankruptcy, and B has remained in occupation of the land since the disclaimer for over ten years?
  • Bankruptcy
  • Disclaimer
  • Vesting orders
  • Escheat
  • Adverse possession

Bankruptcy

While this Q&A mentions both undischarged and discharged bankrupt, we have focused on ‘discharged’. We have also assumed that this Q&A is referring to freehold land and not a residential dwelling in respect of which the three-year rule applies. See Practice Note: The 'three-year rule' in bankruptcy under section 283A of the Insolvency Act 1986

Any interest in real property held by the bankrupt at the date the bankruptcy commences will vest in the trustee. This would include the legal title and the right to be registered as the legal proprietor where the bankrupt is the sole owner. In cases where the bankrupt and another or others are the joint registered proprietors of real property, the bankrupt and the other co-owner(s) will hold the property on trust for the trustee and the other co-owner(s).

The period of bankruptcy commences when the bankruptcy order is made and continues until discharge (or until the bankruptcy order is rescinded or annulled). As a general rule, the bankrupt will be automatically discharged on the first anniversary of the bankruptcy order. However, the automatic discharge on the first anniversary can be suspended by order of the order under certain circumstances (section 279 of the Insolvency Act 1986 (IA 1986)). See: Discharge from bankruptcy and suspension of automatic discharge—overview and The immediate effects of a bankruptcy order on the bankrupt.

Disclaimer

The trustee is

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