Part XVI Provisions Against Debt Avoidance (England and Wales only) (ss 423-425)
Part XVI Provisions Against Debt Avoidance (England and Wales only) (ss 423-425)

423 Transactions defrauding creditors

(1)     This section relates to transactions entered into at an undervalue; and a person enters into such a transaction with another person if—

(a)     he makes a gift to the other person or he otherwise enters into a transaction with the other on terms that provide for him to receive no consideration;

(b)     he enters into a transaction with the other in consideration of marriage [or the formation of a civil partnership]; or

(c)     he enters into a transaction with the other for a consideration the value of which, in money or money's worth, is significantly less than the value, in money or money's worth, of the consideration provided by himself.

(2)     Where a person has entered into such a transaction, the court may, if satisfied under the next subsection, make such order as it thinks fit for—

(a)     restoring the position to what it would have been if the transaction had not been entered into, and

(b)     protecting the interests of persons who are victims of the transaction.

(3)     In the case of a person entering into such a transaction, an order shall only be made if the court is satisfied that it was entered into by him for the purpose—

(a)     of putting assets beyond the reach of a person who is making, or may at some time make, a claim against him, or

(b)     of otherwise prejudicing the interests of such a person in relation to the claim which he is making or may make.

(4)     In this section “the court” means the High Court or—

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