Remedies following determination of a transaction defrauding creditors claim (Re Hurst)

Article summary

Restructuring & Insolvency analysis: This was the remedy hearing following a prior determination in favour of the trustee in bankruptcy (the trustee) in respect of a declaration of trust (the declaration) concerning a dwelling (the property). The remedy sought by the trustee was the setting aside of the declaration to enable the property to be sold to settle bankruptcy liabilities with the balance being remitted to one or more of the respondents, with the trustee to have sole conduct of the sale. The key aspect in this matter was that there was expected to be a surplus once the bankruptcy liabilities had been paid. Although, ordinarily, if a trust is set aside the trust property reverts to the settlor this does not automatically apply in relation to a remedy being sought under section 423 of the Insolvency Act 1986 (IA 1986). As the bankrupt had voluntarily disposed of her interest in the property for the benefit of the beneficiaries...