Bankruptcy meaning

Options for landlord This checklist outlines the choices open to a landlord of commercial premises where the tenant is an insolvent individual, and explains the effect of restrictions operating under the various insolvency regimes. Where a landlord of a commercial property seeks to take steps against an insolvent tenant who is an individual, this checklist should then be referred to to confirm whether the landlord is permitted to pursue such action...

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...

This Flowchart This Flowchart outlines the different phases and key actions the involved parties should undertake prior to formally issuing proceedings, in accordance with the Pre-Action Protocol for the Resolution of Clinical Disputes. It ought to be considered alongside both Practice Notes: Clinical negligence new starter guide—Pre-action and The Pre-Action Protocol for the Resolution of Clinical Disputes—6 April 2015 onwards, which describe the pertinent stages in greater detail. The protocol itself is available here: The Pre-Action Protocol for the Resolution of Clinical Disputes...

In this issue Key DR developments Claims and remedies Costs and funding Litigation Applications—general Evidence and disclosure Appeals New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments CPR Committee minutes Minutes of the CPR Committee meeting—6 June 2025: The Civil Procedure Rule Committee met on 6 June 2025 in a hybrid session at The Rolls Building (Royal Courts of Justice) and via video conference. The minutes confirm a forthcoming CPR 51 pilot enabling non-parties to obtain court documents, arising from the Supreme Court ruling in Cape Intermediate Holdings Ltd v Dring [2019] UKSC 38. They also record approved amendments to the e‑working pilot, progressing towards a permanent electronic filing system as part of ongoing court modernisation. Further topics included summary assessment of costs, arbitration updates, disclosure, civil restraint orders, closed material procedures, judicial review reforms for infrastructure projects, whiplash reforms, digital services and other procedural...

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;...

Sriram (acting by her litigation friend, the Official Solicitor) v Revenue and Customs Commissioners and another [2024] EWHC 853 (Ch), [2024] All ER (D) 86 (Apr) What are the practical implications of this case? Creditors should act with care to ensure that service of a statutory demand (and bankruptcy petition) is properly effected, particularly where a debtor seeks to avoid service and has several addresses. Attempts to serve ought to be clearly and contemporaneously recorded. Creditors are required to take all reasonable measures to bring the document or documents to the debtor’s attention. However, this does not oblige them to attend or write to every address associated with the debtor that they know about. The addresses that must be tried will depend on the circumstances of the individual case. A wide, scattergun strategy to service is not expected. By way of example, if a debtor holds multiple properties and there is no reply to a visit or correspondence at one property, that location may not amount to a ‘known’...

Yunneng Wind Power Co. Limited successfully sought a Part 26A restructuring plan (RP), with the convening hearing in July 2023 and the sanction hearing in August 2023. The key points are set out below. Capitalised terms not defined here take the meanings assigned in the convening and sanction judgments. This Deal Debrief forms part of the Restructuring plans collection. For a fuller review of core metrics from RPs lodged in 2023, alongside commentary from leading figures in the restructuring sphere, see Practice Note: Market Insights Trend Report—trends in Part 26A restructuring plans in 2023 [Archived]. Name of plan company Yunneng Wind Power Co....

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...

There are several situations in which a company’s shares may change hands at times, the most frequent being a disposal of the shares by way of sale transactions. Other scenarios include a transfer arising on the creation or enforcement of security, or effected as a gift. It is likewise possible for a company to purchase its own shares, and for shares to be transmitted by operation of law (eg following the death or bankruptcy of a holder). This Practice Note concentrates on the standard steps required to implement a transfer of certificated shares on a sale that is not a buy-back transaction in practice. Certificated shares, uncertificated shares and their transfer Company shares may exist in certificated or uncertificated form. They are held in certificated form where the company has issued, or ought to have issued, a paper share certificate for the holding concerned. They are held in uncertificated form where the shares are recorded electronically; in that case the company need not, and will not, have issued...

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...

Part 1, interpretation and limitation of liability Unless the context requires otherwise, these articles use terms defined in the Companies Act 2006 (and any amending or subordinate legislation) and within these articles. Defined terms include: address; articles; bankruptcy (including similar overseas procedures); chair and chair of the meeting (articles 13 and 30); Companies Acts; director (including anyone acting as such); document (including electronic); electronic form/means and hard copy form; instrument; member; ordinary and special resolutions; eligible director; participate; proxy notice; relevant officer (non‑auditor officers of the company or any group undertaking, present or former); subsidiary; and writing (any visible representation, including electronic) The model articles are excluded. Unless otherwise stated, statutory expressions bear the meaning they had when these articles became binding. References to legislation include any modification, re‑enactment or replacement. Singular includes plural and vice versa; masculine includes feminine and neuter; persons include corporations Each member’s liability is limited to £1, payable on a winding up while a member or within one year of ceasing, towards:...

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...

If a lease was granted at undervalue, you are the 3rd owner, and you knew it was at undervalue, if creditors ask for an order returning the property to the original owner you cannot claim relief? Transactions at an undervalue (TUVs) are regulated by the Insolvency Act 1986 (IA 1986). The relevant provisions are: sections 238, 240 and 241 of the IA 1986 for companies sections 339 to 342 of the IA 1986 for individuals These powers are available to trustees in bankruptcy, liquidators (in both compulsory and voluntary liquidations), and administrators. They permit the office-holder to review dealings made by the insolvent person or company in the lead-up to insolvency and to assess whether assets should be recovered for the insolvent estate. In particular, an order under: section 241 of the IA 1986 (for companies), or section 342 of the IA 1986 (for individuals) cannot be made against the other party to 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)...