Q&As

Does a bankrupt commit a criminal offence if they do not disclose to their trustee in bankruptcy any new or increased income?

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Published on LexisPSL on 31/10/2017

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

  • Does a bankrupt commit a criminal offence if they do not disclose to their trustee in bankruptcy any new or increased income?

Does a bankrupt commit a criminal offence if they do not disclose to their trustee in bankruptcy any new or increased income?

A bankrupt is subject to an ongoing duty to co-operate with their trustee in bankruptcy (trustee) pursuant to inter alia section 333 of the Insolvency Act 1986 (IA 1986). The duty to co-operate continues after receipt of discharge from bankruptcy (IA 1986, s 333(3)). Breach of IA 1986, s 333 is punishable by a contempt of court (IA 1986, s 333(4)).

IA 1986, s 333(2) provides that as part of the bankrupt’s duties, a bankrupt shall notify their trustee of ‘…an increase of the bankrupt’s income… within the prescribed period’.

The prescribed period is 21 days of a bankrupt becoming aware of the said increase (Rule 10.125 of the Insolvency (England

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