Whether or not someone owns property (including property in bank and other accounts) as joint tenant or tenant in common is a matter of their intention; see In re Figgis. The intention may be discerned from their express wishes—contained in a written document—or inferred from their behaviour and the surrounding circumstances; see Drakeford v Cotton and Stain and the cases

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 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. It is perhaps easier to consider, firstly, what property can be acquired by a trustee in bankruptcy after the date of the bankruptcy order as after-acquired property under section 307 of the Insolvency Act 1986 (IA 1986). IA 1986, s 307 provides that 'after-acquired property' is property which is acquired by, or devolved on, the bankrupt after the date the bankruptcy order is made. On the face of it, therefore,

Where the bankrupt was a party to a contract containing an arbitration agreement before the commencement of the bankruptcy, section 349A of the Insolvency Act 1986 sets out how the agreement may be enforced by or against the trustee in bankruptcy (trustee) in relation to matters arising from or connected with the contract. If the trustee has adopted the contract, the arbitration agreement is enforceable by or against the trustee in relation to matters arising from

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 complicating factors regarding ownership (ie that it was held on trust or was subject to any hire purchase or other finance agreement). Under section 283 of the Insolvency Act 1986 (IA 1986), the assets that comprise the bankruptcy estate are those that belonged to or were vested in the bankrupt at the time the bankruptcy order was made. Accordingly, the property would have formed part of the bankruptcy estate, unless it was excluded under IA 1986, s 283(2) (for example, because the car was necessary for the bankrupt’s employment, business or vocation). We assume that the property was not so excluded. Under IA 1986, s 306, upon his

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 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. In answering this Q&A, we have assumed that the property in question has re-vested in the bankrupt, whether under section 283A(2) of the Insolvency Act 1986 (IA 1986) or otherwise. Section 3 of HM Land Registry Practice Guide 34 provides guidance on the removal of the bankruptcy entries registered against a property's title, and subparagraph 3.5 specifically deals with the situation where a bankrupt’s former interest in a property has re-vested in that bankrupt. You will see from subparagraph 3.5 that, under rule 6.237A of the

Section 283A of the Insolvency Act 1986 (IA 1986) sets out the conditions in which the bankrupt’s home ceases to form part of the estate. It applies where property comprised in the bankrupt’s estate consists of an interest in a dwelling house which at the date of bankruptcy was the sole or principal residence of: ‘…(a) The bankrupt, (b) The bankrupt’s spouse or civil partner, or (c) A former spouse or former civil partner of the bankrupt’ Supporting Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 10.167 applies the same definition. The definitions in IA

For the purpose of answering your query we assume that: (1) the properties in question are solely owned (legally and beneficially) by the bankrupt, (2) the properties are occupied by tenants under assured shorthold tenancies which commenced prior to the presentation of the bankruptcy petition or application, and (3) none of the properties are occupied in any way by the bankrupt. On the basis of the first assumption, title in the properties vests in the trustee in bankruptcy (trustee) pursuant to section 306 of the Insolvency Act 1986 (IA 1986) without any conveyance, assignment or transfer—see Practice Note: Property that vests in the trustee in bankruptcy on bankruptcy and how the trustee in bankruptcy ascertains the extent of their interest in it. Where, prior to the bankruptcy, the bankrupt had let out

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 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. We are aware that trustees in bankruptcy are experiencing issues in practice in respect of applications to court seeking possession and sale orders where the bankruptcy order was made by the adjudicator (the court rejecting applications as the bankruptcy is not recognised at that court). This may mean that there may be a lacuna in the law concerning the consequences of the changes to debtors’ bankruptcy petitions. While we do not have content that specifically deals with this scenario, the following may be useful for research on this matter. Legislative changes Section 71 of the Enterprise and Regulatory Reform Act 2013 (ERRA 2013)

The Insolvency Express Trials (IET) pilot scheme, which is found in CPR PD 51P, commenced on 1 April 2016 with the purpose 'to provide litigants in the Bankruptcy and Companies Court of the High Court with a speedy, streamlined procedure, and an early date for trial or disposal of simple applications by the Bankruptcy Registrars' with the consequence of also limiting and saving costs for the parties. For further reading, see Practice Note: The pilot scheme for Insolvency Express Trials [Archived]. It was originally due to come to an end after

Challenging a transaction at undervalue When a trustee in bankruptcy (trustee) is successful in challenging a transaction at undervalue under section 339 of the Insolvency Act 1986 (IA 1986), the court will make such order as it thinks fit under IA 1986, s 342 to restore the position to that which it would have been had the transaction not taken place. That might mean that the beneficiary of the undervalue transaction is ordered to pay money to the trustee in respect of the benefit received or to transfer any property to the trustee to vest in the bankruptcy estate. This Q&A looks at the effect of the bankruptcy subsequently being annulled. Annulling a bankruptcy order There is no restriction on who can apply to annul a bankruptcy order. However,

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 2016), SI 2016/1024. The content in this Q&A may have been affected by this change. Under rule 6.14(6) of the Insolvency Rules 1986, SI 1986/1925 (IR 1986), a bankruptcy petition may be served outside of England and Wales. However, this can only happen with the court’s permission, and the court can direct how service is to be effected. In the case of bankruptcy petitions, IR 1986, r 12A.20 provides that Part 6 of the Civil Procedure Rules (CPR) shall apply to the service of court documents outside the jurisdiction with such modifications as the court may direct.

For the purposes of this Q&A, we have assumed that the bankrupt was the sole legal owner of the property. Where an individual is declared bankrupt and a trustee in bankruptcy has been appointed, the registered property owned by the individual automatically vests in the trustee. See section 306 of the Insolvency Act 1986 (IA 1986) which states: ‘306 Vesting of bankrupt's estate in trustee • the bankrupt's estate shall vest in the trustee immediately on his appointment taking effect or, in the case of the official receiver, on his becoming trustee. • where any