Definition of the bankruptcy estate and which assets vest in the trustee in bankruptcy

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Certificate of urgency for applications in insolvency proceedings

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Most recent Definition of the bankruptcy estate and which assets vest in the trustee in bankruptcy content

Q&As

A former residential tenant (A) is liable for rent and insurance arrears under an authorised guarantee agreement. Where the arrears pre-date a bankruptcy order made against A, does section 281(5)(a) of the Insolvency Act 1986 mean that the landlord can still issue proceedings and seek to recover the arrears from A? Does the fact that A has been discharged from bankruptcy make any difference?

This is a ‘new’ lease under the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995). Accordingly, presumably the former tenant is liable for...

22nd Jan

Practice notes

How a pension is dealt with in bankruptcy

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Practice notes

What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take?

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15th Jan

Practice notes

The 'three-year rule' in bankruptcy under section 283A of the Insolvency Act 1986

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Produced in partnership with Amit Gupta of St Philips Chambers 15th Jan

Practice notes

After-acquired property under section 307 of the Insolvency Act 1986

Bankruptcy estateUnder section 306(1) of the Insolvency Act 1986 (IA 1986), the bankrupt’s estate vests in the trustee in bankruptcy (trustee)...

Produced in partnership with Katherine Hallett of Three Stone Chambers 15th Jan

Practice notes

Property that vests in the trustee in bankruptcy on bankruptcy and how the trustee in bankruptcy ascertains the extent of their interest in it

One of the main functions of the trustee in bankruptcy (trustee) is, in accordance with section 305(2) of the Insolvency Act 1986 (IA 1986), to get...

15th Jan

Q&As

A trustee in bankruptcy is required under section 305 of the Insolvency Act 1986 to get in, realise and distribute the bankruptcy estate. To what extent can a trustee exercise his discretion in relation to this requirement, for example to receive a payment into the estate from a third party in lieu of the realisation of an estate asset?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR...

Produced in partnership with Carly Schiff of Boyes Turner 8th Jan

Q&As

What is the date a bankrupt 'acquires' property or it 'devolves' on the bankrupt under section 307(1) of the Insolvency Act 1986 where the property is a death benefit arising from an insurance policy (or similar) requiring the policy administrator to exercise discretion to pay the benefit, eg date of death of the person who nominated the bankrupt to receive the death benefit or the date that the administrator exercises discretion to make the payment?

Under section 307(1) of the Insolvency Act 1986 (IA 1986), the trustee in bankruptcy (trustee) may give notice in writing to claim for the bankrupt’s...

Produced in partnership with David Sawtell of 39 Essex Chambers 8th Jan

Q&As

Where all of the assets are in the sole name of one spouse, there are minor children in the family, and it is believed that the other spouse may be made bankrupt, will the trustee in bankruptcy be able to make a claim against those assets? Is the position different if the parties have only separated and not divorced?

Where a person is made bankrupt, a trustee in bankruptcy is appointed into whose hand is vested the assets of the bankrupt. The role of the trustee in...

Produced in partnership with Chris Bryden of 4 King’s Bench Walk 8th Jan

Q&As

A solely-owned property vests in a trustee in bankruptcy and is subject to both a mortgage and equitable charge. If the bankrupt’s spouse is able to purchase the property for consideration equal to the equity in the property and the mortgagee consents, what happens to the equitable charge if not protected by a restriction? Does it have to be repaid by the trustee in bankruptcy from the proceeds?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR...

Produced in partnership with Jonathan Edwards of Radcliffe Chambers 8th Jan

Q&As

What authority is there for saying that ‘a trustee in bankruptcy stands in the shoes of the bankrupt’?

Under bankruptcy law, the bankrupt’s property subject to certain exceptions, called the estate, vests in the trustee in bankruptcy automatically upon...

Produced in partnership with XXIV Old Buildings 8th Jan

Q&As

If a secure tenant of a local housing authority becomes bankrupt, does their tenancy form part of the bankruptcy estate? Does the position alter if the tenancy has been demoted?

Section 283 of the Insolvency Act 1986 (IA 1986) exempts certain assets from falling within the bankruptcy estate. There is a specific exclusion for...

7th Dec

Q&As

What happens when a trustee in bankruptcy seeks to claim property that is personal to the bankrupt, and which the bankrupt became entitled to after the date of the bankruptcy order?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 (IR 1986) were revoked and replaced by the Insolvency (England and Wales) Rules...

29th Nov

Q&As

If a beneficiary under a will is adjudged bankrupt, but a deed of variation has been entered into which reduces the bankrupt’s entitlement, could that transaction potentially be challenged by the trustee in bankruptcy? Will this depend on when the deed of variation is entered into (pre-bankruptcy petition, post-petition but pre-order or post-bankruptcy)?

A deed of variation is a lifetime gift by the beneficiary who gives up their entitlement under another's estate. For the purposes of this Q&A we have...

29th Nov

Precedents

Notice claiming after-acquired property under section 307 of the Insolvency Act 1986

[insert name, address and contact details or reference of author][insert date]To: [insert the name[s] of the person[s] to whom the letter is...

29th Nov

Q&As

Can equitable accounting principles apply to rental properties (ie where the joint owners are not in occupation)? If so, and the non-bankrupt joint owner pays the mortgage, is the trustee in bankruptcy of the bankrupt joint owner liable to repay half of the value of the mortgage payments to the non-bankrupt joint owner on the sale of the property?

Equitable accountingEquitable accounting is the process by which proceeds of the sale of a jointly-owned property are adjusted to, in effect,...

29th Nov

Q&As

Where a bankrupt disposes of property comprised in the bankruptcy estate, does the trustee in bankruptcy have a claim over the proceeds of sale?

For the purposes of this Q&A we have assumed that the bankrupt owned the property at the time the bankruptcy order was made, and that there were no...

29th Nov

Q&As

If an undischarged bankrupt overpays PAYE and, prior to discharge, that overpayment is offered to be refunded, is that overpayment ‘income’ for the purposes of an income payments order, or ‘property’ for the purposes of after-acquired property?

What comprises ‘income’ for the purpose of ss 310 and 310A of the Insolvency Act 1986 (IA 1986)?Section 310(7) of the Insolvency Act 1986 (IA 1986)...

29th Nov

Q&As

What steps does a trustee in bankruptcy need to take if he wants to realise his interest in a property?

In general terms, all property (as so broadly defined) belonging to or vested in the bankrupt at the commencement of the bankruptcy forms part of the...

29th Nov

Q&As

Can shares transferred as a result of a mandatory transfer clause (in the event of bankruptcy) be held on trust by the continuing shareholder until the offending shareholder is no longer bankrupt?

The mandatory transfer provisions should be considered in conjunction with the anti-deprivation principle (ADP). The ADP is a principle that seeks to...

29th Nov

Definition of the bankruptcy estate and which assets vest in the trustee in bankruptcy

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Latest Restructuring & Insolvency News

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