Trustee in bankruptcy 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...

Income payments order The trustee in bankruptcy (trustee) may seek an income payments order (IPO) pursuant to section 310 of the Insolvency Act 1986 (IA 1986) where, having assessed matters, they consider the bankrupt enjoys surplus income once the bankrupt’s reasonable domestic needs are allowed for. See Practice Note: Income payments orders (IPOs) under section 310 of the Insolvency Act 1986. The court is responsible for setting the venue for the hearing of the trustee’s application. The trustee must provide the bankrupt with not less than 28 days’ notice of any application, enclosing the application itself and a statement of the grounds on which the order is requested. Up to five business days before the hearing date, the bankrupt may consent to the order by notifying both the court and the trustee. Alternatively, by attending the hearing, the bankrupt may make any representations they wish as to why the order ought not to be made. Any order issued must not leave the bankrupt with less than is necessary to...

Checklist and timeline This concise checklist and timetable is prepared from the viewpoint of a claim started under sections 339 and/or 340 of the Insolvency Act 1986 (IA 1986) by a trustee in bankruptcy (trustee). Step/action Time (days) Section/rule Examine the background and circumstances culminating in the debtor’s bankruptcy and the issues underpinning the claim(s) against the respondent(s) (usually those who received the payments/transactions). This encompasses securing the books, papers or records concerning the bankrupt’s estate or affairs that must be handed to the trustee, and conducting interviews with, among others, the bankrupt, the bankrupt’s spouse, former spouse, civil partner or former civil partner, and any person who appears able to provide information about the bankrupt or their dealings, affairs or property, as relevant to the matters in issue. No limit (subject to limitation) IA 1986, ss 365–366 Prepare and issue the application containing the particulars required by Insolvency (England and Wales) Rules 2016 (IR...

Singh (as trustee in bankruptcy of Mrs Angela Garcha) v Garcha and others [2024] EWHC 1844 (Ch) What are the practical implications of this case? The obligation on a judge to provide reasons for their conclusions flows from three core considerations: ensuring that the appellate system can operate effectively (English v Emery Reimbold & Strick Ltd (Practice Note) [2002] EWCA Civ 605; [2002] 1 WLR 2409, para [19]) recognising that the parties are entitled to be told how their substantive rights have been decided (Weymont v Place [2015] EWCA Civ 289, para [6]) upholding fairness by addressing any evidence that appears particularly persuasive, where such material exists (Simetra Global Assets Ltd v Ikon Finance Ltd [2019] EWCA Civ 1413, para [46]) That said, a judge is not required to engage with every point raised. It is enough if the reasoning demonstrates to the parties—and, if necessary, to the Court of Appeal—the essential basis on which the decision was reached (Eagil...

Restructuring & Insolvency weekly highlights—29 February 2024 In this issue: Restructuring Corporate insolvency processes Insolvency litigation Directors and insolvency Personal insolvency Industry/sector guides for R&I lawyers Daily and weekly news alerts Key dates for R&I professionals Corporate Rescue and Insolvency (February 2024 edition) Latest Q&A Restructuring New Practice Notes—Part 26A restructuring plan deal debriefs The LexisNexis Restructuring & Insolvency practical guidance team have released four fresh Practice Notes within their ‘Restructuring Plan deal debrief’ series: ‘Part 26A restructuring plan deal debrief—The Good Box Labs Co Ltd (in administration)’, ‘Part 26A restructuring plan deal debrief—CFG Investments SAC’, ‘Part 26A restructuring plan deal debrief—ED&F Man Holdings Ltd’ and ‘Part 26A restructuring plan deal debrief—Hong Kong Airlines Ltd’. These Notes consider the key terms of the Part 26A restructuring plan proposed by NGI Systems & Solutions Ltd for the SME, The Good Box Labs Co Ltd (in administration), in 2023. They also examine the...

In this issue: Disputes and remedies Neighbour and party wall disputes Enforcing security and property insolvency Property disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts Dates for your diary New and updated content Trackers Disputes and remedies Supreme Court confirms no tortious damages recoverable where the ‘but for’ causation test is unmet in relation to Japanese knotweed (Davies v Bridgend County Borough Council) In Davies v Bridgend County Borough Council [2024] All ER (D) 32 (May) [2024] UKSC 15, the Supreme Court unanimously allowed the appeal, holding that, applying the ‘but for’ test, compensation is not payable where the drop in value of the claimant’s land was not brought about by the defendant’s tortious acts, and therefore no award of damages is appropriate in such circumstances. The ruling matters particularly for claims where Japanese knotweed encroachment commenced before the duty to treat Japanese knotweed...

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...

This Practice Note reviews the factors the court will take into account and the test it will adopt when considering an application by a trustee in bankruptcy (the trustee) seeking orders for possession and sale of the bankrupt’s home, including accommodation occupied by the bankrupt’s family... For further reading on making possession and sale applications and on the timing of any application, see Practice Notes: Possession and sale applications in respect of a bankrupt’s family home The ‘three-year rule’ in bankruptcy under section 283A of the Insolvency Act 1986 Applications for possession and sale of the family home Where a trustee applies to the court for possession and sale, they will, amongst other things, need both an order for sale and an order for vacant possession. In substance this is a two-stage exercise, yet, in practice, it is usually addressed within a single application. If the property is jointly owned, section 14 of the Trusts of Land and Appointment of Trustees...

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 introduced an updated framework for decision-making across all insolvency procedures from 6 April 2017. The detailed rules governing decision-making are contained in IR 2016, SI 2016/1024, Pt 15. The prescribed decision procedures There are five decision procedures through which a trustee in bankruptcy (trustee) may obtain a decision from a bankrupt’s creditors under section 379ZA of the Insolvency Act 1986 (IA 1986), namely: correspondence electronic voting virtual meeting physical meeting any other decision-making procedure which enables equal participation by all creditors Seeking a decision without a meeting Correspondence If a decision is sought by correspondence, creditors will only be able to accept or reject the proposal. Electronic voting This mirrors correspondence in that creditors will only be able to accept or reject the proposed decision. Where electronic voting is to be used: the notice delivered to creditors must include any...

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...

VAR Insolvency Act Application Notice Note: This precedent should be used in conjunction with an application notice template complying with the Insolvency (England and Wales) Rules 2016, SI 2016/1024—refer to: (Form IAA) IR 2016, r 1.35 Court Reference No: [ INSERT COURT REF ]...

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...

One must carefully take into account a bankrupt’s duties owed to the trustee in bankruptcy (TIB)...

GDPR The General Data Protection Regulation (GDPR), Regulation (EU) 2016/679, sets out a framework that protects individuals in respect of the processing of personal data, whilst at the same time promoting the free movement of that data. The Data Protection Act 2018 incorporates the GDPR into the law of England and Wales. Accordingly, it applies to the handling of data within insolvency proceedings in this jurisdiction. For comprehensive information and an overview of the GDPR regime, see: UK data protection law collection. GDPR and Insolvency Proceedings As noted in the question, section 312(2)(b) of the Insolvency Act 1986 (IA 1986) imposes a duty on the prior trustee in bankruptcy to deliver property and records to the new trustee in bankruptcy. It is important to recognise that this obligation has serious consequences, and a failure to comply amounts to contempt of court...