Disclaimer, dissolution and bona vacantia

Disclaimer

Liquidators and trustees in bankruptcy (trustees) are entitled to disclaim any onerous property.

Onerous property in each case is defined (sections 178(3) and 315(2) of the Insolvency Act 1986) as:

•
any unprofitable contract
•
any other property which is unsaleable or not readily saleable, or is such that it may give rise to a liability to pay money or perform any other onerous act

The form of onerous property that is most commonly encountered by office-holders is leasehold property, but disclaimer is not in any way limited just to leases. It applies to any contract or property that falls within the scope of the statutory definitions. For guidance on onerous property, see Practice Note: What is considered onerous property or contracts?

Disclaimer is effected by the liquidator or trustee authenticating and dating a notice of disclaimer and sending copies of the authenticated and dated notice of disclaimer to prescribed persons.

Disclaimer takes effect from the date of the notice of disclaimer, except in respect of disclaimers of leasehold property and (in the case of disclaimer by a trustee) of property which

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