The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:
This Practice Note looks at equitable accounting, what it is, how and when it applies. It does not look at how the trustee in bankruptcy (trustee) ascertains and values any interest they may have in property, what assets vest in them, how they release any interest and the equity of exoneration. For further reading on this, see Practice Notes:
Property that vests in the trustee in bankruptcy on bankruptcy and how the trustee in bankruptcy ascertains the extent of their interest in it
Protecting a trustee in bankruptcy's interest in property following their appointment
The equity of exoneration and how it applies in practice
Possession and sale applications in respect of a bankrupt's family home
Equitable accounting is a process which allows an account of the sale proceeds of the property to take place before the terms of any express or constructive trust take effect and applies as an alternative/addition to the constructive or express trust. It seeks to alter the division of net sale proceeds (ie you get back what you put in). It is a way for a non-owner to gain a share in the net sale proceeds or a co-owner to increase their share in the net sale proceeds. It is not a way for a non-owner/co-owner to gain/increase their interest in the property (ie from a 50% share
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When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the company may want to ensure that relevant creditors quickly enter a standstill agreement to gain some breathing space to consider a restructuring
ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
Commercial Property Standard Enquiries (CPSEs) are industry standard pre-contract enquiries used in commercial property transactions. CPSEs are endorsed by the British Property Federation and are free to use. The CPSEs include specific environmental enquiries at enquiry 15 and there are several
Brexit: The UK's departure from the EU on exit day ie Friday 31 January 2020 has implications for practitioners dealing with provisions in the CPR relevant to cross border matters, including CPR 5.4C (discussed below). For guidance on the impact of Brexit on the CPR, see Cross border
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