This Practice Note covers: • the nature of disclaimer • what can be disclaimed • the process of disclaimer, and • restrictions on disclaimer The nature of disclaimer Disclaimer is a statutory procedure which is governed by the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024: • in the case of liquidation, the relevant provisions are found in IA 1986, ss 178–182 and IR 2016, SI 2016/1024, rr 19.1–19.11 • in the case of bankruptcy, the relevant provisions are found in IA 1986, ss 315–321 and IR 2016, SI 2016/1024, rr 19.1–19.11 What can be disclaimed? Both liquidators and trustees in bankruptcy (trustees) may, by giving the prescribed notice, disclaim any onerous property and may do so notwithstanding that they have taken possession of it, endeavoured to sell it or otherwise exercised rights of ownership in relation to it. Onerous property is defined as: • any unprofitable contract • any