Burden on local authority to explain what purpose will be served by bankruptcy (Lock v Aylesbury Vale District Council)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?

Article summary

Restructuring & Insolvency analysis: Tom Cockburn, barrister at 9 Stone Buildings, points out that although the decision in Lock v Aylesbury Vale District Council appears limited to local authority petitioning creditors, practitioners advising other types of creditors should be aware that the same reasoning could be applied if a creditor has particular knowledge of the debtor’s financial circumstances.