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Maintenance agreements and consideration under IA 1986, s 339 (Jackson (as trustee in bankruptcy of the estate of Michael John Sheridan) v Song)

Published on: 20 July 2021
Published by: LexisPSL
  • Maintenance agreements and consideration under IA 1986, s 339 (Jackson (as trustee in bankruptcy of the estate of Michael John Sheridan) v Song)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring & Insolvency analysis: A trustee in bankruptcy sought orders under section 339 of the Insolvency Act 1986 (IA 1986) on the basis that certain payments made in accordance with a maintenance agreement were transactions at an undervalue. The court considered the effect of the maintenance agreement in detail, particularly in light of section 34(1) of the Matrimonial Causes Act 1973 (MCA 1973), which states that any provision purporting to restrict the right to apply to court for a financial arrangement order was void. It was held that the bankrupt’s former partner had had a 50% interest in the property and that the non-paying partner had provided good consideration by entering into the maintenance agreement. The trustee’s application was dismissed. Written by Nora Wannagat, barrister at 9 Stone Buildings. or take a trial to read the full analysis.

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