The bankruptcy court's power to set aside financial orders made on divorce or dissolution of a civil partnership
The bankruptcy court's power to set aside financial orders made on divorce or dissolution of a civil partnership

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • The bankruptcy court's power to set aside financial orders made on divorce or dissolution of a civil partnership
  • The general position of the bankruptcy and family courts
  • The challenges that can be made
  • Challenging property adjustment orders
  • Challenging consent orders

The general position of the bankruptcy and family courts

The impact bankruptcy and divorce proceedings have on one another has been subject to several cases in both the bankruptcy and family courts. Unfortunately, it is not uncommon for bankruptcy proceedings to exist while divorce proceedings are ongoing, and concurrent proceedings can create conflict when it comes to the division of assets. The timing of when the bankruptcy petition is issued compared to when the family court makes a property adjustment order is crucial in determining the effect bankruptcy proceedings will have on family proceedings. For further reading on bankruptcy and divorce proceedings see:

  1. Bankruptcy and family financial remedy proceedings—overview

  2. Practice Note: The impact of bankruptcy on divorce proceedings

  3. Practice Note: Can the court annul a bankruptcy order obtained in order to defeat the divorce proceedings?

  4. Checklist and timeline showing the impact different stages of bankruptcy proceedings can have on ancillary relief proceedings in a divorce

  5. Practice Note: Dos and don'ts for family lawyers when dealing with bankruptcy

This Practice Note considers what challenges are available to the trustee in bankruptcy (trustee) once the family court has made a property adjustment order, which was made before the bankruptcy petition was presented at court ie on the face of it, the order of the family court will bind the trustee.

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