Petition scheme meaning

Asset Vests in the trustee in bankruptcy? The bankrupt’s (their family’s) primary/sole residence: Yes (but only for a limited period). It falls into the bankruptcy estate for three years starting on the date the bankruptcy order is made. Reference: IA 1986, s 283A. Freehold property: Yes. Any interest the bankrupt has in land vests in the trustee in bankruptcy. Reference: IA 1986, ss 283(1), 436. Leasehold property: Varies. Save for a few exceptions, leasehold interests vest in the trustee; certain statutory tenancies are excluded by IA 1986, s 283(3A), though the trustee can still claim them by serving a notice. Reference: IA 1986, ss 283(1), 283(3A), 308A. Money/cash: Yes. Any money or cash held when the bankruptcy order is made forms part of the estate and vests in the trustee. Reference: IA 1986, ss 283(1), 436. Pensions: No (mostly). The bankrupt’s pension rights do not vest if: (i) the petition was presented on or after 29 May 2000, and (ii) the pension scheme...

In this issue: Key DR developments Claims and remedies Costs and funding Cross-border disputes Injunctions Civil appeals New content Dates for your diary Useful information Daily and weekly news alerts Key DR developments CPR updates 174th Practice Direction update effective 5 November 2024: The Master of the Rolls and the Parliamentary Under-Secretary of State for Justice have authorised the 174th Practice Direction (PD) update to the Civil Procedure Rules (CPR). The changes take effect at 11am on 5 November 2024. This PD update amends CPR PD 51ZE (Small Claims Track Automatic Referral to Mediation Pilot Scheme) and CPR PD 51R (Online Civil Money Claims (OCMC) Pilot Scheme), expanding the obligation to engage in integrated mediation in civil matters to money claims submitted via the OCMC service. For more information, see: LNB News 22/10/2024 127—174th Practice Direction update—in force 5 November 2024. Court guidance Damages Claims Pilot under CPR PD 51ZB—updated guidance:...

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In this issue: Lending On demand bonds Aviation finance Real estate finance Derivatives Cryptoassets Daily and weekly news alerts New and updated content Useful information Lending DG Resources Ltd v HMRC [2025] EWHC 201 (Ch) The Chancery Division allowed DG Resources Ltd’s appeal opposing HMRC’s attempt to wind up the company. The dispute centred on whether delivering a winding-up petition to a Companies House default address amounted to valid service under the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. The court determined that, where a company’s registered office is at a default address, service must comply with the hierarchical scheme in IR 2016, SI 2016/1024, Sch 4 para 2. That scheme is exclusive, displacing the general service route in section 1139(1) of the Companies Act 2006 (CA 2006). HMRC had not served the petition in the manner required, so service was ineffective; accordingly, proper service had not been achieved. Although DG...

This Practice Note covers: the impact of an insolvency process on ongoing litigation where the debtor, bankrupt or insolvent company is a claimant or defendant how an insolvency process interacts with an arbitration agreement binding the debtor, bankrupt or insolvent company additional considerations in a cross-border setting Personal insolvency What happens when the bankrupt is a claimant in ongoing proceedings? The presentation of a bankruptcy petition, whether by a creditor or by the debtor, has no legal consequence for proceedings already on foot where the debtor is the claimant. Once a bankruptcy order is made and a trustee in bankruptcy (the trustee) is appointed, most causes of action in which the bankrupt has an interest vest in the trustee under section 306 of the Insolvency Act 1986 (IA 1986). In such circumstances, it is the trustee, rather than the bankrupt, who has standing to carry on the claim. The trustee will proceed only if that course best serves the interests...

The impact that bankruptcy and divorce proceedings have on one another Decisions in both the bankruptcy and family courts have repeatedly grappled with how each process affects the other. It is, regrettably, frequent for a bankruptcy to be underway at the very time a marriage is ending, and running both together often generates friction: the competing pull of creditors’ claims against the needs of the bankrupt’s spouse and any dependants. The family court’s task is to craft a property adjustment order, apportioning the parties’ assets with an eye to their future requirements, including provision for children and other dependants. By contrast, the bankruptcy court is concerned with distributing the bankrupt spouse’s estate strictly in line with the statutory insolvency scheme. That clash of objectives must be evaluated with particular care, and, above all, the chronology—when the bankruptcy commenced as against when any property adjustment order was made—tends to be the decisive factor. This Practice Note considers the successive phases of a bankruptcy and explains how each stage may bear...

This glossary sets out numerous expressions frequently encountered in the restructuring arena. Words appearing in the definitions in bold are explained in other entries in this glossary. For further banking terminology, see the principal Banking & Finance Glossary. Restructuring glossary—A Acceleration: Acceleration means the agent, acting on directions from the majority lenders after an event of default, takes formal action, for example calling for early repayment of the facility. Ad-hoc committee: A temporary creditors’ group (often contrasted with a formal committee) that lacks any entitlement to official recognition. Administration: A process under the IA 1986 in which a financially distressed company is operated by an administrator as a going concern before longer-term outcomes, such as break-up and sale, are pursued. Administrator: An Insolvency Practitioner named by the court, a Qualifying floating charge holder, the directors or the company, to take control and fulfil one of the purposes in IA 1986, Sch B1. Administrative receivership: Arises when a company breaches the terms of...

A pension sharing order A pension sharing order enables one party to obtain, in their own name and in their own right, benefits directly debited from the other party’s pension scheme, and secures a clean break between the parties regarding pensions. Sections 11 and 12 of the Welfare Reform and Pensions Act 1999 (WRPA 1999) state that pension rights under approved pension schemes do not vest in a trustee in bankruptcy, provided the bankruptcy petition was presented on or after 29 May 2000 under the legislation. Consequently, if the individual holding the pension to be shared is made bankrupt, the court’s authority to make a pension sharing order should remain unaffected in law...