Q&As

Is a trustee in bankruptcy's remuneration, as in time costs, classed as being an expense or cost of dealing with the assets payable under IR 1986, r 6.224 (1) (a) and not (o) or (q)?

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Published on LexisPSL on 22/11/2016

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

  • Is a trustee in bankruptcy's remuneration, as in time costs, classed as being an expense or cost of dealing with the assets payable under IR 1986, r 6.224 (1) (a) and not (o) or (q)?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The content in this Q&A may have been affected by this change.

As indicated in this Q&A, rule 6.224 of the Insolvency Rules 1986, SI 1986/1925 (IR 1986) (IR 1986, SI 1986/1925, r 6.224 provides that the expenses of bankruptcy are payable out of the estate based upon a strict order of priority divided into 18 categories.

The highest priority of payment of expense arises, in relation to expenses or costs which are properly chargeable or incurred by the trustee in preserving, realising or getting in any of the assets of the bankrupt or otherwise relating to the conduct of any legal proceedings which he has power to bring or defend (IR 1986, SI 1986/1925, r 6.224(1)(a)(i)).

This head includes costs such as solic

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