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

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Practice notes

US bankruptcy financing—debtor-in-possession (DIP) financing

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Produced in partnership with Liz Downing of Skadden Arps Slate Meagher & Flom LLP 12th Jan

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Prohibited names under section 216 of the Insolvency Act 1986

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Precedents

Certificate of urgency for applications in insolvency proceedings

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Practice notes

Equitable accounting—how it works in practice

This Practice Note looks at equitable accounting, what it is, how and when it applies. It does not look at how the trustee in bankruptcy (trustee)...

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Loan to value covenants

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Produced in partnership with Alexander Pelopidas, James Walton and Matthew Brew of Rosling King LLP 12th Jan

Practice notes

Practice Direction on Insolvency Proceedings

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Role, powers, functions and duties of a liquidator

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Practice notes

Covenant waivers and resets

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Practice notes

What is considered onerous property or contracts?

DisclaimerUnder sections 178 and 315 of the Insolvency Act 1986 (IA 1986), a liquidator or a trustee in bankruptcy (trustee) has the power to disclaim...

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Practice notes

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

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Practice notes

US ipso facto clauses

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Produced in partnership with Liz Downing of Skadden Arps Slate Meagher & Flom LLP 12th Jan

Practice notes

Debt for equity swaps

A popular restructuring method is a debt for equity swap; financial creditors receive equity in the restructured vehicle in return for reducing or...

9th Nov

Practice notes

What is a statutory declaration of solvency, and what happens if a false declaration of solvency is made

Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For...

Produced in partnership with Robert Smailes of Leonard Curtis Business Solutions Group & Simon Hunter of Three Stone 12th Jan

Practice notes

Key elements of a standstill agreement

When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the...

9th Nov

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...

9th Apr

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...

9th Apr

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...

25th Mar

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...

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

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...

Produced in partnership with Philip Hinks of 3 Verulam Buildings (3VB) 3rd Mar

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 23rd Feb

Q&As

Can a bank holding security over a bankrupt borrower’s property seek judgment against the bankrupt to then seek a charging order over another of the bankrupt’s properties?

The bankruptcy estateThe first point to note is that the bankruptcy estate comprises all property belonging to or vested in the bankrupt at the...

15th Feb

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...

15th Feb

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)...

15th Feb

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...

15th Feb

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...

15th Feb

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...

15th Feb

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...

15th Feb

Q&As

If a client of a solicitor's firm pays monies on account but is subsequently adjudged bankrupt, can the trustee in bankruptcy recover this money? Is the situation different if the monies on account have already been used to pay a bill and so is no longer held on client account? Could it be challenged as a preference under section 340 of the Insolvency Act 1986?

Client moneyAll money held or received in the course of practice falls into one of two categories—client money or office money (SRA AR 2011, r 12)....

15th Feb

Q&As

An approved individual voluntary arrangement (IVA) proposal provided that the debtor’s jointly-owned property was to be valued 12 months before the end of the IVA and funds to the value of the debtor’s equity be paid into the IVA. The debtor, before being made bankrupt by the supervisor on failure of the IVA, sold the property, bought a property in her sole name, and then (while the petition was pending) transferred it into her partner’s sole name. Is it for the supervisor or the trustee in bankruptcy to investigate and deal with this issue?

Background—bankruptcy and its effect on an individual voluntary arrangement (IVA)A bankruptcy order may be made against a debtor notwithstanding the...

15th Feb

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...

15th Feb

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...

15th Feb

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 15th Feb

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 15th Feb

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,...

15th Feb

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

View Restructuring & Insolvency by content type:

Latest Restructuring & Insolvency News

Cross-Border Insolvency Regulations 2006—recognition of Ukrainian bank liquidation (Re PJSC Bank Finance and Credit (in liquidation))

Restructuring & Insolvency weekly highlights—6 May 2021

Application of modified universalism where Article 4 of Brussels I (recast) is engaged (WWRT v Tyshchenko)

Recognition of EEA credit institution insolvency proceedings post-Brexit (Re Greensill Bank AG)

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