Bankrupt meaning

Assistance with the checklist This summary checklist and timeline presuppose that the trustee in bankruptcy (trustee) is ready to file an application to the court for an order for possession and sale of a property in which the bankrupt previously held an interest that now vests in the trustee under section 306 of the Insolvency Act 1986 (IA 1986). It also assumes the trustee has written to the owners to try to realise their interest without issuing court proceedings, and that it is the appropriate moment to make the application. If the property is of a type within IA 1986, s 283A(1), then unless the trustee takes certain steps before the third anniversary of the bankruptcy order—among them applying to court for a possession and sale order—the trustee’s interest in that property will automatically re-vest in the bankrupt. Accordingly, the trustee must take timely steps in relation to the property...

Under section 279(1) of the Insolvency Act 1986 (IA 1986) A bankrupt is released from bankruptcy automatically at the expiry of one year starting on the date the bankruptcy order is made, pursuant to section 279(1) of the Insolvency Act 1986 (IA 1986). In some circumstances, however, it is preferable to apply to the court for an order suspending that automatic discharge. This concise checklist and timetable addresses applications to suspend automatic discharge from bankruptcy, outlining each stage from preparing the application for issue through to the making of the suspension from discharge order, together with matters to be dealt with after the order is made. The checklist and timetable do not apply to criminal bankruptcies under IA 1986, ss 264 and 280, nor to applications by the official receiver (OR) under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 10.104(5) following the adjournment of a public examination. Step/action Time (days) Section/rule 1...

Annulment: payment in full Under section 282 of the Insolvency Act 1986 (IA 1986), a bankrupt may apply to have their bankruptcy annulled where they can discharge in full, and in particular in their entirety, the bankruptcy estate’s costs, expenses and claims, or, alternatively, provide security for those sums, as applicable. This Checklist and timeline sets out the procedure for annulment applications on this basis, identifying each step sequentially after settlement of the estate’s costs, expenses and claims, from payment through to the making of the annulment order, together with the matters that must be addressed once the order has been made, thereafter. It shows the stages in order. This Checklist and timeline does not apply to, or address, applications brought on the alternative ground in IA 1986, s 282(1)(a), namely a contention that the bankruptcy order should not have been made. For a Checklist and timeline dealing with applications on that alternative basis, see: Summary checklist and timeline for annulment applications where bankruptcy order ought not...

Vesnin v Queeld Ventures Ltd and another company [2025] EWHC 104 (Ch) What are the practical implications of this case? The ruling is of practical and procedural importance for practitioners working on cross-border insolvency and asset recovery. It confirms that a party must show a legitimate interest in the bankruptcy to have standing to resist a common law recognition application—such as a creditor, the bankrupt, or a party with a concrete economic stake in the bankruptcy acting in the same capacity from which that stake arises. A merely commercial or tactical interest—like attempting to thwart a claim to title to shares, as here—is insufficient. Advisers for prospective respondents should therefore consider whether their clients possess the requisite interest in the bankruptcy and advise accordingly. The court did not define what amounts to a tangible economic interest in the insolvency, though possible classes could include: beneficiaries of a trust forming part of the bankrupt’s estate; a secured creditor with rights over assets within the estate;...

Restructuring & Insolvency weekly highlights—29 August 2024 In this issue: Corporate insolvency processes Restructuring Personal insolvency Directors and insolvency Daily and weekly news alerts Corporate Rescue and Insolvency (August 2024 edition) New Q&A Corporate insolvency processes Company’s register of members | Conclusive or not for voting rights? (Bland v Keegan) In proceedings relating to JDK Construction Ltd (JDK), the Court of Appeal examined a challenge to the lawfulness of a written resolution appointing joint liquidators, alongside allegations of an unauthorised share transfer form. The Appellant argued her shares in JDK were wrongfully transferred, rendering the liquidators’ appointment invalid. The key question was whether the company’s register of members—recording her shares as transferred—was determinative for validating the members’ resolution. Affirming the decision of His Honour Judge Hodge KC, the Court of Appeal held that the register stands as prima facie evidence of who the members are and of the validity of resolutions passed by them, unless...

In this issue: Enforcing security and property insolvency Service charges Disputes and remedies Repairing obligations and dilapidations Residential tenancies Rent and rates Contractual issues Additional Property Disputes updates LexTalk®Property Disputes: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Latest Q&As Enforcing security and property insolvency Applications for possession and sale of the family home in bankruptcy (Armstrong v Temblett) The matter involved an application by Mr Armstrong, acting as trustee in bankruptcy (the trustee), seeking an order for possession and sale of Mrs Vanessa Temblett’s London property, jointly owned with her husband (the London property). The court determined that, under section 335A of the Insolvency Act 1986 (IA 1986), the trustee was entitled to possession and sale, as no exceptional circumstances were identified to rebut the statutory presumption that creditors’ interests prevail over other factors. The judgment highlights the need for practitioners...

The official receiver (OR) is designated as trustee in bankruptcy (trustee) or as liquidator to manage and investigate every bankruptcy and court-ordered winding up, including those of partnerships. The Secretary of State or the creditors may, in place of the OR, appoint an insolvency practitioner (IP) to act as trustee for personal insolvencies or as liquidator for corporate cases. Under the Insolvency Regulations 1994, SI 1994/2507, as amended (the Regulations), the OR or IP, as appropriate, is obliged to pay into the (ISA) any funds they receive while administering all bankruptcies and compulsory liquidations. Before 1 October 2011, sums from voluntary liquidations could also be lodged in the ISA; now, only unclaimed dividends in a voluntary liquidation may be paid into the ISA. Likewise, unclaimed dividends arising in an administration or an administrative receivership may be paid into the ISA once the company has been dissolved. The Regulations also permit payments out of the ISA for disbursements, expenses and distributions to creditors and, in a liquidation, to contributories, or, in...

ARCHIVED This archived Practice Note is no longer maintained and is provided for background only. Moreover, some links may not take you to the provisions as they stood on the date this Practice Note’s guidance was published. This year’s annual round-up reviews notable developments from 2017 and signals what is coming in 2018. It covers: Supreme Court rulings in BPE Solicitors v Hughes-Holland and Tiuta v De Villiers on recovery of loss and the assessment of damages in professional negligence claims; Supreme Court decisions in Globalia v Fulton on mitigation, and Lowick Rose v Swynson concerning unjust enrichment and transferred loss; and From the High Court, an important judgment by Coulson J in Russell v Stone on limitation standstill agreements. Reviewing 2017 Professional negligence—recovering damages and the SAAMCO principle What happened? In BPE Solicitors v Hughes-Holland [2017] UKSC 21, the Supreme Court dismissed the trustee in bankruptcy’s appeal, determining that the losses the bankrupt incurred in a...

This Practice Note provides a concise overview of bankruptcy and its effect on legal proceedings from a dispute resolution standpoint, summarising key points in practice... What is bankruptcy? Bankruptcy is an insolvency route for individuals. It applies to individuals only. Prior to 6 April 2016—and in contrast to corporate liquidation—only the court had power to make an individual bankrupt. From 6 April 2016, a new bankruptcy applications regime took effect, replacing debtors' bankruptcy petitions, though creditors' petitions remained unaffected. Petitions lodged by debtors before that date were unaffected; now, anyone seeking their own bankruptcy must file an online application decided by an adjudicator—an official of the Insolvency Service—rather than the court. For more detail and background, see News Analysis: New bankruptcy applications regime to come into force. Once a bankruptcy order is made—by the court or by the adjudicator—it releases the debtor from liabilities owed to creditors (subject to certain statutory exceptions) and bars unsecured creditors from starting—or continuing with—any legal process against the bankrupt or their property...

This formal letter serves hereby to notify the bankrupt and any additional co-owner (or occupier) of the relevant property in question that the trustee in bankruptcy (the trustee) intends to realise their beneficial interest in that property. It should generally be sent only once the trustee has resolved to formally issue a court application for possession and sale, or adapted suitably if they do not propose to apply to the court at this stage. Individual letters must be addressed and posted separately to all co-owners/occupiers, ensuring the trustee can be fully confident each has been clearly notified of the position. The precedent is written in neutral terms so as to allow easy adaptation and appropriate modification where required, and is framed on the basis that it is to be sent by the trustee’s solicitor...

In the County Court at [ Name of county court hearing centre ] [ Name of the county court hearing centre in which the original Bankruptcy Order was made ] Case No: [ Full case number as set out on the original Bankruptcy Order ] RE: [ Name of Debtor ] [ Complete name of the bankrupt as shown on the Bankruptcy Order ] 1 On the Trustee’s application [ insert full name and address of Trustee ], and with the agreement of the bankrupt named above...

Income Payments Agreement This Agreement is entered into by: [ FULL NAME ] of [ ADDRESS ] (the Bankrupt) [ FULL NAME ] of [ FIRM AND FIRM’S ADDRESS ], serving as [ joint ] trustee of the Bankrupt’s estate, together with any successor[ s ] in office, without personal liability (the Trustee) Background On [ DATE ], the [ COURT ] made a bankruptcy order against the Bankrupt under case number [ CASE NO ]; on [ DATE ], the Trustee was appointed to act as trustee of the Bankrupt’s estate. The Bankrupt has supplied the Trustee with a statement of monthly income and expenditure and, having considered the reasonable domestic needs of the Bankrupt and [ his OR her OR family ], the Trustee is of the view that the Bankrupt has surplus monthly income that can be claimed for the benefit of the Bankrupt’s estate...

Section 283 of the Insolvency Act 1986 (IA 1986) In general terms, section 283 states that every asset belonging to the bankrupt, or in which the bankrupt held an interest on the date the bankruptcy order was made, forms the bankruptcy estate. Under IA 1986, s 306, that estate vests in the trustee in bankruptcy (trustee) immediately and automatically on appointment, and stays vested until the trustee deals with it, typically by sale—see Practice Note: What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take? Where the estate includes land or a beneficial interest in land, the trustee should ensure that the correct entries are or become noted against the title, whether the title is registered or unregistered. Depending on whether the property is owned solely or jointly, certain entries may (or should) be made automatically; if they are not, the trustee can apply to the Land Registry. For more detail, see Practice Note: Protecting a...

This is a ‘new’ lease under the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) Accordingly, it is presumed that the former tenant remains liable for arrears pursuant to an authorised guarantee agreement (AGA) (in relation to which, see Practice Note: Lease covenants—liability after assignment of a lease or its reversion), and that liability is subject to the provisions of LT(C)A 1995, s 17 (which has been confirmed as not relevant to this Q&A; if required, see Practice Note: Former tenants, guarantors and overriding leases). Upon discharge, the bankrupt is released from all bankruptcy debts under section 281 of the Insolvency Act 1986 (IA 1986)...

The provisions relating to notices of sums in arrear (NOSIAs) Sections 86B–86D of the Consumer Credit Act 1974 (CCA 1974) set out the rules on notices of sums in arrear (NOSIAs). CCA 1974, s 86B deals with NOSIAs for fixed-sum credit agreements, etc, and CCA 1974, s 86C deals with NOSIAs for running-account credit agreements...