Bankruptcy

Vesting

Vesting of Bankrupt’s Assets All property and assets belonging to the bankrupt vest in the Official Assignee for the benefit of creditors, subject to certain exceptions. The bankrupt must notify the Official Assignee of property later acquired.… Read the rest

Real Property

Powers and Functions of Official Assignee I The functions of the Official Assignee are to get in and realise the property, to ascertain the debts and liabilities and to distribute the assets in accordance with the Bankruptcy Act. … Read the rest

Partnerships

Partnerships and Insolvency Partnerships constitute an important mechanism for undertaking business. In certain sectors, such as the legal profession, a business may not be incorporated as a company and must practice as sole traders or partnerships. … Read the rest

International Issues

Insolvency cross-border issue. There is an EU wide Regulation on cross-border insolvency. It does not seek to harmonise laws in the area of insolvency as such. Instead, it provides mandatory rules as to which jurisdiction must be recognised as pre-eminent and requires co-operation and assistance by the courts and authorities of other EU states.… Read the rest

Income

Income (pre 3/12/2013 Provisions) The Official Assignee can apply to the court for directions regarding the bankrupt’s income. This power applies to earned and unearned income including pensions in payment. The provision in relation to income and pensions were reformed in 2013.… Read the rest

Discharge

Discharge and Termination I An individual is subject to bankruptcy restrictions until he is discharged from bankruptcy. A discharge frees the debtor from all pre-bankruptcy liabilities.Upon discharge the bankrupt is discharged from debts which could have been proved for in the bankruptcy.… Read the rest

Commencement

Overview Bankruptcy law is designed both to assist creditors and protect debtors. In the absence of insolvency law, a creditor who is first to obtain a judgment/court order and enforce against a debtor could potentially take and keep all the debtor’s assets to the exclusion of all other unsecured creditors.… Read the rest

Claiming

Order of Entitlement In bankruptcy, the trustee in bankruptcy or Official Assignee takes control of all of the debtor’s assets, except a limited number of excluded assets, and sells or realises them for the benefit of the creditors.… Read the rest

Asset Adjustment

Adjustment of Bankrupt’s Estate There are provisions in the Bankruptcy Act allowing the Official Assignee or trustee to get rid of onerous property and to reclaim assets that have been wrongfully transferred by the bankrupt. The former provision facilitates the disclaiming of assets which carry liabilities which may drain the bankrupt’s assets.… Read the rest

Administration

The Official Assignee The Official Assignee’s office was transferred from the Courts Service to the Insolvency Service under the Personal Insolvency Act 2012. The Official Assignee is a member of the staff of the Insolvency Service. … Read the rest