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

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Winding-up and administration searches for companies at the Central Registry

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What is considered onerous property or contracts?

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US ipso facto clauses

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Loan to value covenants

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

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...

25th Sep

Practice notes

How a pension is dealt with in bankruptcy

The position of a personal pension on bankruptcyA bankrupt’s estate automatically vests in the official receiver (or an insolvency practitioner if...

25th Sep

Practice notes

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

The 'three-year rule' and why it appliesThe reforms introduced by the Enterprise Act 2002 (EnA 2002) included the insertion of a new section 283A into...

25th Sep

Practice notes

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

Definition of property and some general principlesProperty is defined very widely in section 436 of the Insolvency Act 1986 (IA 1986), and includes...

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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)...

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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 28th Sep

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...

28th Sep

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 28th Sep

Q&As

What are the restrictions on the bankrupt regarding awards of damages for financial mis-selling?

The position will depend on whether the cause of action giving rise to the claim for mis-selling arose before or after the making of the bankruptcy...

28th Sep

Q&As

Is an application to extend the three-year period provided for by section 283A of the Insolvency Act 1986 made under rule 1.35 of the Insolvency (England and Wales) Rules 2016?

Under section 283A of the Insolvency Act 1986 (IA 1986), a trustee in bankruptcy (trustee) is required to take the steps set out in that section in...

28th Sep

Q&As

Can a bankrupt commence legal proceedings in respect of a claim for breach of contract? If they cannot, can the trustee make this claim on their behalf?

The bankrupt’s estatePursuant to section 283 of the Insolvency Act 1986 (IA 1986) all property (as so broadly defined) belonging to or vested in the...

28th Sep

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 28th Sep

Q&As

If a bankruptcy notice has not been registered at HM Land Registry, on the title register or at the Land Charges Department, what are the risks for a purchaser in proceeding with the purchase of property where a bankruptcy petition or a bankruptcy order has been made against the seller?

The rules in relation to the registration requirement and the effect of a failure to register where a bankruptcy petition has been presented against...

28th Sep

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...

28th Sep

Q&As

Where a claim is stayed prior to the claimant being adjudged bankrupt, does that claim vest in the bankruptcy estate, and does the position change post-discharge? Is there any general limitation rule on reinstating stayed proceedings?

Save for causes of action ‘where the damages are solely to be estimated by immediate reference to pain felt by the bankrupt in respect of his body,...

28th Sep

Q&As

Where an individual was made bankrupt in 1991 and has since been discharged, is their trustee in bankruptcy able to claim the bankrupt’s pension that existed at the time of the bankruptcy order for the benefit of creditors? If so, and the bankrupt has continued to make contributions to the pension, is the trustee in bankruptcy’s claim limited to the value of the pension at the time of the bankruptcy order or an increased amount?

Under Section 283(1)(a) of the Insolvency Act 1986 (IA 1986) the estate of a bankrupt is defined as all property belonging to the bankrupt at the...

28th Sep

Q&As

Is it legally possible for a trustee in bankruptcy to assign property back to a bankrupt before the bankruptcy is discharged?

Is it possible for a bankrupt to have assigned back to them some property which had vested in their trustee in bankruptcy by virtue of the Insolvency...

28th Sep

Q&As

Where an application is made by a creditor to lift the stay in bankruptcy proceedings, who is the application served on? If that includes the bankrupt, what happens if they have died?

Under section 285 of the Insolvency Act 1986 (IA 1986), on the making of a bankruptcy order, no creditor of the bankrupt who has a provable claim can...

28th Sep

Q&As

Can a person who is bankrupt issue a claim against a company?

In answering this Q&A, we assume you are referring to a claim that has not yet been issued at court.The presentation of a bankruptcy petition, by a...

28th Sep

Q&As

Is a trustee in bankruptcy liable for the breaches of covenant by the bankrupt tenant?

In answering this Q&A, we have assumed that the breach of covenant is either a breach of a short-term tenancy lease or a long leasehold interest.The...

28th Sep