(1) Subject as follows, the trustee of a bankrupt’s estate may be removed from office only by an order of the court or by a decision of the bankrupt's creditors made by a creditors' decision procedure instigated specially for that purpose in accordance with the rules.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Where the official receiver is trustee by virtue of section 291A(1) or a trustee is appointed by the Secretary of State or (otherwise than under section 291A(2)) by the court, a creditors' decision procedure may be instigated for the purpose of removing the trustee only if—
(a) the trustee thinks fit, or
(b) the court so directs, or
(c) ... one of the bankrupt’s creditors so requests, with the concurrence of not less than one-quarter, in value, of the creditors (including the creditor making the request).
(4A) Where the bankrupt's creditors decide to remove a trustee, they may in accordance with the rules appoint another person as trustee in his place.
(4B) Where the decision to remove a trustee is made under subsection (4), the decision does not take effect until the bankrupt's creditors appoint another person as trustee in his place.
(5) If the trustee was appointed by the Secretary of State, he may be removed by a direction of the Secretary of State.
(6) The trustee (not being the official receiver) shall vacate office if he ceases to be a person who is for the time being qualified to act as an insolvency practitioner in relation to the bankrupt.
(7) The trustee may, in the prescribed circumstances, resign his office by giving notice of his resignation to the prescribed person.
(8) The trustee shall vacate office on giving notice to the prescribed person that the trustee has given notice under section 331(2).
(8A) A notice under subsection (8)—
(a) must not be given before the end of the period prescribed by the rules as the period within which the bankrupt's creditors may object to the trustee's release, and
(b) must state whether any of the bankrupt's creditors objected to the trustee's release.
(9) The trustee shall vacate office if the bankruptcy order is annulled.
(1) Where the official receiver has ceased to be the trustee of a bankrupt’s estate and a person is appointed in his stead, the official receiver shall have his release with effect from the following time, that is to say—
(a) where that person is appointed by ... the bankrupt’s creditors or by the Secretary of State, the time at which the official receiver gives notice under this paragraph to the prescribed person that he has been replaced, and
(b) where that person is appointed by the court, such time as the court may determine.
(2) If the official receiver while he is the trustee gives notice to the Secretary of State that the administration of the bankrupt’s estate in accordance with Chapter IV of this Part is for practical purposes complete, he shall have his release with effect from such time as the Secretary of State may determine.
(3) A person other than the official receiver who has ceased to be the trustee shall have his release with effect from the following time, that is to say—
(a) in the following cases, the time at which notice is given to the prescribed person in accordance with the rules that that person has ceased to hold office —
(i) the person has been removed from office by a decision of the bankrupt's creditors and the creditors have not decided against his release,
(ii) the person has died;
(b) in the following cases, such time as the Secretary of State may, on an application by the person, determine—
(i) the person has been removed from office by a decision of the bankrupt's creditors and the creditors have decided against his release,
(ii) the person has been removed from office by the court or by the Secretary of State,
(iii) the person has vacated office under section 298(6);
(c) in the case of a person who has resigned, such time as may be prescribed;
(d) in the case of a person who has vacated office under section 298(8)—
(i) if any of the bankrupt's creditors objected to the person's release before the end of the period for so objecting prescribed by the rules, such time as the Secretary of State may, on an application by that person, determine, and
(ii) otherwise, the time at which the person vacated office.
(3A) Where the person is removed from office by a decision of the bankrupt's creditors, any decision of the bankrupt's creditors as to whether the person should have his release must be made by a creditors' decision procedure.
(4) Where a bankruptcy order is annulled, the trustee at the time of the annulment has his release with effect from such time as the court may determine.
(5) Where the offical receiver or the trustee has his release under this section, he shall, with effect from the time specified in the preceeding provisions of this section, be discharged from all liability both in respect of acts or omissions of his in the administration of the estate and otherwise in relation to his conduct as trustee.
But nothing in this section prevents the exercise, in relation to a person who has had his release under this section, of the court’s powers under section 304.
(1) This section applies where the appointment of any person as trustee of a bankrupt’s estate fails to take effect or, such an appointment having taken effect, there is otherwise a vacancy in the office of trustee.
(2) The official receiver shall be trustee until the vacancy is filled.
(3) The official receiver may ask the bankrupt's creditors to appoint a person as trustee, and must do so if so requested by not less than one tenth in value of the bankrupt's creditors.
(3A) If the official receiver makes such a request the bankrupt's creditors may in accordance with the rules appoint a person as trustee.
(4) If at the end of the period of 28 days beginning with the day on which the vacancy first came to the offical receiver’s attention he has not asked, and is not proposing to ask, the bankrupt's creditors to appoint a person as trustee, he shall refer the need for an appointment to the Secretary of State.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) On a reference to the Secretary of State under subsection (4) . . . the Secretary of State shall either make an appointment or decline to make one.
(7) If on a reference under subsection (4) . . . no appointment is made, the official receiver shall continue to be trustee of the bankrupt’s estate, but without prejudice to his power to make a further reference.
(8) References in this section to a vacancy include a case where it is necessary, in relation to any property which is or may be comprised in a bankrupt’s estate, to revive the trusteeship of that estate after the vacation of office by the trustee under section 298(8) or the giving by the official receiver of notice under section 299(2).
(1) Subject as follows, a bankrupt's creditors may, in accordance with the rules, establish a committee (known as “the creditors’ committee”) to exercise the functions conferred on it by or under this Act.
(2) The bankrupt’s creditors shall not establish such a committee, or confer any functions on such a committee, at any time when the official receiver is the trustee of the bankrupt’s estate, except in connection with the appointment of a person to be trustee instead of the official receiver.
302 Exercise by Secretary of State of functions of creditors’ committee.
(1) The creditors’ committee is not to be able or required to carry out its functions at any time when the official receiver is trustee of the bankrupt’s estate; but at any such time the functions of the committee under this Act shall be vested in the Secretary of State, except to the extent that the rules otherwise provide.
(2) Where in the case of any bankruptcy there is for the time being no creditors’ committee and the trustee of the bankrupt’s estate is a person other than the official receiver, the functions of such a committee shall be vested in the Secretary of State, except to the extent that the rules otherwise provide.
(1) If a bankrupt or any of his creditors or any other person is dissatisfied by any act, omission or decision of a trustee of the bankrupt’s estate, he may apply to the court; and on such an application the court may confirm, reverse or modify any act or decision of the trustee, may give him directions or may make such other order as it thinks fit.
(2) The trustee of a bankrupt’s estate may apply to the court for directions in relation to any particular matter arising under the bankruptcy.
(2A) Where at any time after a bankruptcy petition has been presented to the court against any person, whether under the provisions of the Insolvent Partnerships Order 1994 or not, the attention of the court is drawn to the fact that the person in question is a member of an insolvent partnership, the court may make an order as to the future conduct of the insolvency proceedings and any such order may apply any provisions of that Order with any necessary modifications.
(2B) Where a bankruptcy petition has been presented against more than one individual in the circumstances mentioned in subsection (2A) above, the court may give such directions for consolidating the proceedings, or any of them, as it thinks just.
(2C) Any order or directions under subsection (2A) or (2B) may be made or given on the application of the official receiver, any responsible insolvency practitioner, the trustee of the partnership or any other interested person and may include provisions as to the administration of the joint estate of the partnership, and in particular how it and the separate estate of any member are to be administered.
(1) Where on an application under this section the court is satisfied—
(a) that the trustee of a bankrupt’s estate has misapplied or retained, or become accountable for, any money or other property comprised in the bankrupt’s estate, or
(b) that a bankrupt’s estate has suffered any loss in consequence of any misfeasance or breach of fiduciary or other duty by a trustee of the estate in the carrying out of his functions,
the court may order the trustee, for the benefit of the estate, to repay, restore or account for money or other property (together with interest at such rate as the court thinks just) or, as the case may require, to pay such sum by way of compensation in respect of the misfeasance or breach of fiduciary or other duty as the court thinks just.
This is without prejudice to any liability arising apart from this section.
(2) An application under this section may be made by the official receiver, the Secretary of State, a creditor of the bankrupt or (whether or not there is, or is likely to be, a surplus for the purposes of section 330(5) (final distribution)) the bankrupt himself.
But the leave of the court is required for the making of an application if it is to be made by the bankrupt or if it is to be made after the trustee has had his release under section 299.
(3) Where—
(a) the trustee seizes or disposes of any property which is not comprised in the bankrupts estate, and
(b) at the time of the seizure or disposal the trustee believes, and has reasonable grounds for believing, that he is entitled (whether in pursuance of an order of the court or otherwise) to seize or dispose of that property,
the trustee is not liable to any person (whether under this section or otherwise) in respect of any loss or damage resulting from the seizure or disposal except in so far as that loss or damage is caused by the negligence of the trustee; and he has a lien on the property, or the proceeds of its sale, for such of the expenses of the bankruptcy as were incurred in connection with the seizure or disposal.
(1) This Chapter applies in relation to any bankruptcy where either—
(a) the appointment of a person as trustee of a bankrupt’s estate takes effect, or
(b) the official receiver becomes trustee of a bankrupt’s estate.
(2) The function of the trustee is to get in, realise and distribute the bankrupt’s estate in accordance with the following provisions of this Chapter; and in the carrying out of that function and in the management of the bankrupt’s estate the trustee is entitled, subject to those provisions, to use his own discretion.
(3) It is the duty of the trustee, if he is not the official receiver—
(a) to furnish the official receiver with such information,
(b) to produce to the offical receiver, and permit inspection by the official receiver of, such books, papers and other records, and
(c) to give the official receiver such other assistance,
as the official receiver may reasonably require for the purpose of enabling him to carry out his functions in relation to the bankruptcy.
(4) The official name of the trustee shall be “the trustee of the estate of ............, a bankrupt” (inserting the name of the bankrupt); but he may be referred to as “the trustee in bankruptcy” of the particular bankrupt.
(1) The bankrupt’s estate shall vest in the trustee immediately on his appointment taking effect or, in the case of the official receiver, on his becoming trustee.
(2) Where any property which is, or is to be, comprised in the bankrupt’s estate vests in the trustee (whether under this section or under any other provision of this Part), it shall so vest without any conveyance, assignment or transfer.
(1) This section applies where—
(a) property is excluded from the bankrupt’s estate by virtue of section 417(2)(a) of the Proceeds of Crime Act 2002 (property subject to a restraint order),
(b) an order under section 50, 67A, 128, 131A, 198 or 215A of that Act has not been made in respect of the property, ...
(c) the restraint order is discharged , and
(d) immediately after the discharge of the restraint order the property is not detained under or by virtue of section 44A, 47J, 122A, 127J, 193A or 195J of that Act.
(2) The property vests in the trustee as part of the bankrupt's estate.
(3) But subsection (2) does not apply to the proceeds of property realised by a management receiver under section 49(2)(d) or 197(2)(d) of that Act (realisation of property to meet receiver’s remuneration and expenses).
(1) This section applies where—
(a) property is excluded from the bankrupt's estate by virtue of section 417(2)(b) of the Proceeds of Crime Act 2002 (property detained under certain provisions),
(b) no order is in force in respect of the property under section 41, 50, 120, 128, 190 or 198 of that Act, and
(c) the property is released.
(2) The property vests in the trustee as part of the bankrupt's estate.
306B Property in respect of which receivership or administration order made
(1) This section applies where—
(a) property is excluded from the bankrupt’s estate by virtue of section 417(2)(c) of the Proceeds of Crime Act 2002 (property in respect of which an order for the appointment of a receiver or administrator under certain provisions of that Act is in force),
(b) a confiscation order is made under section 6, 92 or 156 of that Act,
(c) the amount payable under the confiscation order is fully paid, and
(d) any of the property remains in the hands of the receiver or administrator (as the case may be).
(2) The property vests in the trustee as part of the bankrupt’s estate.
306BA Property in respect of which realisation order made
(1) This section applies where—
(a) property is excluded from the bankrupt's estate by virtue of section 417(2)(d) of the Proceeds of Crime Act 2002 (property in respect of which an order has been made authorising realisation of the property by an appropriate officer),
(b) a confiscation order is made under section 6, 92 or 156 of that Act,
(c) the amount payable under the confiscation order is fully paid, and
(d) any of the property remains in the hands of the appropriate officer.
(2) The property vests in the trustee as part of the bankrupt's estate.
306C Property subject to certain orders where confiscation order discharged or quashed
(1) This section applies where—
(a) property is excluded from the bankrupt’s estate by virtue of section 417(2)(a), (b), (c) or (d) of the Proceeds of Crime Act 2002 (property excluded from bankrupt's estate ),
(b) a confiscation order is made under section 6, 92 or 156 of that Act, and
(c) the confiscation order is discharged under section 30, 114 or 180 of that Act (as the case may be) or quashed under that Act or in pursuance of any enactment relating to appeals against conviction or sentence.
(2) Any such property vests in the trustee as part of the bankrupt's estate if it is in the hands of—
(a) a receiver appointed under Part 2 or 4 of that Act,
(b) an administrator appointed under Part 3 of that Act,
(c) an appropriate officer (within the meaning of section 41A, 120A or 190A of that Act).
(3) But subsection (2) does not apply to the proceeds of property realised by a management receiver under section 49(2)(d) or 197(2)(d) of that Act (realisation of property to meet receiver’s remuneration and expenses).
(1) Subject to this section and section 309, the trustee may by notice in writing claim for the bankrupt’s estate any property which has been acquired by, or has devolved upon, the bankrupt since the commencement of the bankruptcy.
(2) A notice under this section shall not be served in respect of—
(a) any property falling within subsection (2) or (3) of section 283 in Chapter II,
(aa) any property vesting in the bankrupt by virtue of section 283A in Chapter II,
(b) any property which by virtue of any other enactment is excluded from the bankrupt’s estate, or
(c) without prejudice to section 280(2)(c) (order of court on application for discharge), any property which is acquired by, or devolves upon, the bankrupt after his discharge.
(3) Subject to subsections (4) and (4A) , upon the service on the bankrupt of a notice under this section the property to which the notice relates shall vest in the trustee as part of the bankrupt’s estate; and the trustee’s title to that property has relation back to the time at which the property was acquired by, or devolved upon, the bankrupt.
(4) Where, whether before or after service on the bankrupt of a notice under this section—
(a) a person acquires property in good faith, for value and without notice of the bankruptcy, ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the trustee is not in respect of that property ... entitled by virtue of this section to any remedy against that person ..., or any person whose title to any property derives from that person ....
(4A) Where a banker enters into a transaction before service on the banker of a notice under this section (and whether before or after service on the bankrupt of a notice under this section) the trustee is not in respect of that transaction entitled by virtue of this section to any remedy against the banker.
This subsection applies whether or not the banker has notice of the bankruptcy.
(5) References in this section to property do not include any property which, as part of the bankrupt’s income, may be the subject of an income payments order under section 310.
308 Vesting in trustee of certain items of excess value.
(1) Subject to section 309, where—
(a) property is excluded by virtue of section 283(2) (tools of trade, household effects, etc.) from the bankrupt’s estate, and
(b) it appears to the trustee that the realisable value of the whole or any part of that property exceeds the cost of a reasonable replacement for that property or that part of it,
the trustee may by notice in writing claim that property or, as the case may be, that part of it, for the bankrupt’s estate.
(2) Upon the service on the bankrupt of a notice under this section, the property to which the notice relates vests in the trustee as part of the bankrupt’s estate; and, except against a purchaser in good faith, for value and without notice of the bankruptcy, the trustee’s title to that property has relation back to the commencement of the bankruptcy.
(3) The trustee shall apply funds comprised in the estate to the purchase by or on behalf of the bankrupt of a reasonable replacement for any property vested in the trustee under this section; and the duty imposed by this subsection has priority over the obligation of the trustee to distribute the estate.
(4) For the purposes of this section property is a reasonable replacement for other property if it is reasonably adequate for meeting the needs met by the other property.
Upon the service on the bankrupt by the trustee of a notice in writing under this section, any tenancy—
(a) which is excluded by virtue of section 283(3A) from the bankrupt’s estate, and
(b) to which the notice relates,
vests in the trustee as part of the bankrupt’s estate; and, except against a purchaser in good faith, for value and without notice of the bankruptcy, the trustee’s title to that tenancy has relation back to the commencement of the bankruptcy.
(1) Except with the leave of the court, a notice shall not be served—
(a) under section 307, after the end of the period of 42 days beginning with the day on which it first came to the knowledge of the trustee that property in question had been acquired by, or had devolved upon, the bankrupt;
(b) under section 308 or section 308A, after the end of the period of 42 days beginning with the day on which the property or tenancy in question first came to the knowledge of the trustee.
(2) For the purposes of this section—
(a) any thing which comes to the knowledge of the trustee is deemed in relation to any successor of his as trustee to have come to the knowledge of the sucessor at the same time; and
(b) any thing which comes (otherwise than under paragraph (a)) to the knowledge of a person before he is the trustee is deemed to come to his knowledge on his appointment taking effect or, in the case of the official receiver, on his becoming trustee.
(1) The court may . . . make an order (“an income payments order”) claiming for the bankrupt’s estate so much of the income of the bankrupt during the period for which the order is in force as may be specified in the order.
(1A) An income payments order may be made only on an application instituted—
(a) by the trustee, and
(b) before the discharge of the bankrupt.
(2) The court shall not make an income payments order the effect of which would be to reduce the income of the bankrupt when taken together with any payments to which subsection (8) applies below what appears to the court to be necessary for meeting the reasonable domestic needs of the bankrupt and his family.
(3) An income payments order shall, in respect of any payment of income to which it is to apply, either—
(a) require the bankrupt to pay the trustee an amount equal to so much of that payment as is claimed by the order, or
(b) require the person making the payment to pay so much of it as is so claimed to the trustee, instead of to the bankrupt.
(4) Where the court makes an income payments order it may, if it thinks fit, discharge or vary any attachment of earnings order that is for the time being in force to secure payments by the bankrupt.
(5) Sums received by the trustee under an income payments order form part of the bankrupt’s estate.
(6) An income payments order must specify the period during which it is to have effect; and that period—
(a) may end after the discharge of the bankrupt, but
(b) may not end after the period of three years beginning with the date on which the order is made.
(6A) An income payments order may (subject to subsection (6)(b)) be varied on the application of the trustee or the bankrupt (whether before or after discharge).
(7) For the purposes of this section the income of the bankrupt comprises every payment in the nature of income which is from time to time made to him or to which he from time to time becomes entitled, including any payment in respect of the carrying on of any business or in respect of any office or employment and (despite anything in section 11 or 12 of the Welfare Reform and Pensions Act 1999) any payment under a pension scheme but excluding any payment to which subsection (8) applies..
(8) This subsection applies to—
(a) payments by way of guaranteed minimum pension; ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) In this section, “guaranteed minimum pension” has the same meaning as in the Pension Schemes Act 1993.
(1) In this section “income payments agreement” means a written agreement between a bankrupt and his trustee or between a bankrupt and the official receiver which provides—
(a) that the bankrupt is to pay to the trustee or the official receiver an amount equal to a specified part or proportion of the bankrupt’s income for a specified period, or
(b) that a third person is to pay to the trustee or the official receiver a specified proportion of money due to the bankrupt by way of income for a specified period.
(2) A provision of an income payments agreement of a kind specified in subsection (1)(a) or (b) may be enforced as if it were a provision of an income payments order.
(3) While an income payments agreement is in force the court may, on the application of the bankrupt, his trustee or the official receiver, discharge or vary an attachment of earnings order that is for the time being in force to secure payments by the bankrupt.
(4) The following provisions of section 310 shall apply to an income payments agreement as they apply to an income payments order—
(a) subsection (5) (receipts to form part of estate), and
(b) subsections (7) to (9) (meaning of income).
(5) An income payments agreement must specify the period during which it is to have effect; and that period—
(a) may end after the discharge of the bankrupt, but
(b) may not end after the period of three years beginning with the date on which the agreement is made.
(6) An income payments agreement may (subject to subsection (5)(b)) be varied—
(a) by written agreement between the parties, or
(b) by the court on an application made by the bankrupt, the trustee or the official receiver.
(7) The court—
(a) may not vary an income payments agreement so as to include provision of a kind which could not be included in an income payments order, and
(b) shall grant an application to vary an income payments agreement if and to the extent that the court thinks variation necessary to avoid the effect mentioned in section 310(2).
(1) The trustee shall take possession of all books, papers and other records which relate to the bankrupt’s estate or affairs and which belong to him or are in his possession or under his control (including any which would be privileged from disclosure in any proceedings).
(2) In relation to, and for the purpose of acquiring or retaining possession of, the bankrupt’s estate, the trustee is in the same position as if her were a receiver of property appointed by the High Court; and the court may, on his application, enforce such acquisition or retention accordingly.
(3) Where any part of the bankrupt’s estate consists of stock or shares in a company, shares in a ship or any other property transferable in the books of a company, office or person, the trustee may exercise the right to transfer the property to the same extent as the bankrupt might have exercised it if he had not become bankrupt.
(4) Where any part of the estate consists of things in action, they are deemed to have been assigned to the trustee; but notice of the deemed assignment need not be given except in so far as it is necessary, in a case where the deemed assignment is from the bankrupt himself for protecting the priority of the trustee.
(5) Where any goods comprised in the estate are held by any person by way of pledge, pawn or other security and no notice has been served in respect of those goods by the official receiver under subsection (5) of section 285 (restriction on realising security), the trustee may serve such a notice in respect of the goods; and whether or not a notice has been served under this subsection or that subsection, the trustee may, if he thinks fit, exercise the bankrupt’s right of redemption in respect of any such goods.
(6) A notice served by the trustee under subsection (5) has the same effect as a notice served by the official receiver under section 285(5).
(1) The bankrupt shall deliver up to the trustee possession of any property, books, papers or other records of which he has possession or control and of which the trustee is required to take possession.
This is without prejudice to the general duties of the bankrupt under section 333 in this Chapter.
(2) If any of the following is in possession of any property, books, papers or other records of which the trustee is required to take possession, namely—
(a) the official receiver,
(b) a person who has ceased to be trustee of the bankrupt’s estate, or
(c) a person who has been the supervisor of a voluntary arrangement approved in relation to the bankrupt under Part VIII,
the official receiver or, as the case may be, that person shall deliver up possession of the property, books, papers or records to the trustee.
(3) Any banker or agent of the bankrupt or any other person who holds any property to the account of, or for, the bankrupt shall pay or deliver to the trustee all property in his possession or under his control which forms part of the bankrupt’s estate and which he is not by law entitled to retain as against the bankrupt or trustee.
(4) If any person without reasonable excuse fails to comply with any obligation imposed by this section, he is guilty of a contempt of court and liable to be punished accordingly (in addition to any other punishment to which he may be subject).
(1) Where any property consisting of an interest in a dwelling house which is occupied by the bankrupt or by his spouse or former spouse or by his civil partner or former civil partner is comprised in the bankrupt’s estate and the trustee is, for any reason, unable for the time being to realise that property, the trustee may apply to the court for an order imposing a charge on the property for the benefit of the bankrupt’s estate.
(2) If on an application under this section the court imposes a charge on any property, the benefit of that charge shall be comprised in the bankrupt’s estate and is enforceable , up to the charged value from time to time, for the payment of any amount which is payable otherwise than to the bankrupt out of the estate and of interest on that amount at the prescribed rate.
(2A) In subsection (2) the charged value means—
(a) the amount specified in the charging order as the value of the bankrupt’s interest in the property at the date of the order, plus
(b) interest on that amount from the date of the charging order at the prescribed rate.
(2B) In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the rules.
(3) An order under this section made in respect of property vested in the trustee shall provide, in accordance with the rules, for the property to cease to be comprised in the bankrupt’s estate and, subject to the charge (and any prior charge), to vest in the bankrupt.
(4) Subsection (1), (2), (4), (5) and (6) of section 3 of the Charging Orders Act 1979 (supplemental provisions with respect to charging orders) have effect in relation to orders under this section as in relation to charging orders under that Act.
(5) But an order under section 3(5) of that Act may not vary a charged value.
313A Low value home: application for sale, possession or charge
(1) This section applies where—
(a) property comprised in the bankrupt’s estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—
(i) the bankrupt,
(ii) the bankrupt’s spouse or civil partner, or
(iii) a former spouse or former civil partner of the bankrupt, and
(b) the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under section 313 in respect of the property.
(2) The court shall dismiss the application if the value of the interest is below the amount prescribed for the purposes of this subsection.
(3) In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the order which prescribes the amount for the purposes of subsection (2).
(1) The trustee may exercise any of the powers specified in Parts 1 and 2 of Schedule 5.
(2) ... the trustee may appoint the bankrupt—
(a) to superintend the management of his estate or any part of it,
(b) to carry on his business (if any) for the benefit of his creditors, or
(c) in any other respect to assist in administering the estate in such manner and on such terms as the trustee may direct.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Part III of Schedule 5 to this Act has effect with respect to the things which the trustee is able to do for the purposes of, or in connection with, the exercise of any of his powers under any of his Group of Parts.
(6) Where the trustee (not being the official receiver) in exercise of the powers conferred on him by any provision in this Group of Parts—
(a) disposes of any property comprised in the bankrupt’s estate to an associate of the bankrupt, or
(b) employs a solicitor,
he shall, if there is for the time being a creditor’s committee, give notice to the committee of that exercise of his powers.
(7) Without prejudice to the generality of subsection (5) and Part III of Schedule 5, the trustee may, if he thinks fit, at any time seek a decision on a matter from the bankrupt’s creditors.
Subject to the preceding provisions in this Group of Parts, he shall seek a decision on a matter if he is requested to do so by a creditor of the bankrupt and the request is made with the concurrence of not less than one-tenth, in value, of the bankrupt’s creditors (including the creditor making the request).
(8) Nothing in this Act is to be construed as restricting the capacity of the trustee to exercise any of his powers outside England and Wales.
(1) Subject as follows, the trustee may, by the giving of the prescribed notice, disclaim any onerous property and may do so notwithstanding that he has taken possession of it, endeavoured to sell it or otherwise exercised rights of ownership in relation to it.
(2) The following is onerous property for the purposes of this section, that is to say—
(a) any unprofitable contract, and
(b) any other property comprised in the bankrupt’s estate which is unsaleable or not readily saleable, or is such that it may give rise to a liability to pay money or perform any other onerous act.
(3) A disclaimer under this section—
(a) operates so as to determine, as from the date of the disclaimer, the rights, interests and liabilities of the bankrupt and his estate in or in respect of the property disclaimed, and
(b) discharges the trustee from all personal liability in respect of that property as from the commencement of his trusteeship,
but does not, except so far as is necessary for the purpose of releasing the bankrupt, the bankrupt’s estate and the trustee from any liability, affect the rights or liabilities of any other person.
(4) A notice of disclaimer shall not be given under this section in respect of any property that has been claimed for the estate under section 307 (after-acquired property) or 308 (personal property of bankrupt exceeding reasonable replacement value) or 308A, except with the leave of the court.
(5) Any person sustaining loss or damage in consequence of the operation of a disclaimer under this section is deemed to be a creditor of the bankrupt to the extent of the loss or damage and accordingly may prove for the loss or damage as a bankruptcy debt.
(1) Notice of disclaimer shall not be given under section 315 in respect of any property if—
(a) a person interested in the property has applied in writing to the trustee or one of his predecessors as trustee requiring the trustee or that predecessor to decide whether he will disclaim or not, and
(b) the period of 28 days beginning with the day on which that application was made has expired without a notice of disclaimer having been given under section 315 in respect of that property.
(2) The trustee is deemed to have adopted any contract which by virtue of this section he is not entitled to disclaim.
(1) The disclaimer of any property of a leasehold nature does not take effect unless a copy of the disclaimer has been served (so far as the trustee is aware of their addresses) on every person claiming under the bankrupt as underlessee or mortgagee and either—
(a) no application under section 320 below is made with respect to the property before the end of the period of 14 days beginning with the day on which the last notice served under this subsection was served, or
(b) where such an application has been made, the court directs that the disclaimer is to take effect.
(2) Where the court gives a direction under subsection (1)(b) it may also, instead of or in addition to any order it makes under section 320, make such orders with respect to fixtures, tenant’s improvements and other matters arising out of the lease as it thinks fit.
Without prejudice to section 317, the disclaimer of any property in a dwelling house does not take effect unless a copy of the disclaimer has been served (so far as the trustee is aware of their addresses) on every person in occupation of or claiming a right to occupy the dwelling house and either—
(a) no application under section 320 is made with respect to the property before the end of the period of 14 days beginning with the day on which the last notice served under this section was served, or
(b) where such an application has been made, the court directs that the disclaimer is to take effect.
(1) The following applies where, in consequence of the disclaimer under section 315 of any land subject to a rentcharge, that land vests by operation of law in the Crown or any other person (referred to in the next subsection as “the proprietor”).
(2) The proprietor, and the successors in title of the proprietor, are not subject to any personal liability in respect of any sums becoming due under the rentcharge, except sums becoming due after the proprietor, or some person claiming under or through the proprietor, has taken possession or control of the land or has entered into occupation of it.
(1) This section and the next apply where the trustee has disclaimed property under section 315.
(2) An application may be made to the court under this section by—
(a) any person who claims an interest in the disclaimed property,
(b) any person who is under any liability in respect of the disclaimed property, not being a liability discharged by the disclaimer, or
(c) where the disclaimed property is property in a dwelling house, any person who at the time when the bankruptcy application was made or (as the case may be) the bankruptcy petition was presented was in occupation of or entitled to occupy the dwelling house.
(3) Subject as follows in this section and the next, the court may, on an application under this section, make an order on such terms as it thinks fit for the vesting of the disclaimed property in, or for its delivery to—
(a) a person entitled to it or a trustee for such a person,
(b) a person subject to such a liability as is mentioned in subsection (2)(b) or a trustee for such a person, or
(c) where the disclaimed property is property in a dwelling house, any person who at the time when the bankruptcy application was made or (as the case may be) the bankruptcy petition was presented was in occupation of or entitled to occupy the dwelling house.
(4) The court shall not make an order by virtue of subsection (3)(b) except where it appears to the court that it would be just to do so for the purpose of compensating the person subject to the liability in respect of the disclaimer.
(5) The effect of any order under this section shall be taken into account in assessing for the purposes of section 315(5) the extent of any loss or damage sustained by any person in consequence of the disclaimer.
(6) An order under this section vesting property in any person need not be completed by any conveyance, assignment or transfer.
(1) The court shall not make an order under section 320 vesting property of a leasehold nature in any person, except on terms making that person—
(a) subject to the same liabilities and obligations as the bankrupt was subject to under the lease on the day the bankruptcy application was made or (as the case may be) the bankruptcy petition was presented, or
(b) if the court thinks fit, subject to the same liabilities and obligations as that person would be subject to if the lease had been assigned to him on that day.
(2) For the purposes of an order under section 320 relating to only part of any property comprised in a lease, the requirements of subsection (1) apply as if the lease comprised only the property to which the order relates.
(3) Where subsection (1) applies and no person is willing to accept an order under section 320 on the terms required by that subsection, the court may (by order under section 320) vest the estate or interest in the bankrupt in the property in any person who is liable (whether personally or in a representative capacity and whether alone or jointly with the bankrupt) to perform the lessee’s covenants in the lease.
The court may by virtue of this subsection vest that estate and interest in such a person freed and discharged from all estates, incumbrances and interests created by the bankrupt.
(4) Where subsection (1) applies and a person declines to accept any order under section 320, that person shall be excluded from all interest in the property.
(1) Subject to this section and the next, the proof of any bankruptcy debt by a secured or unsecured creditor of the bankrupt and the admission or rejection of any proof shall take place in accordance with the rules.
(2) Where a bankruptcy debt bears interest, that interest is provable as part of the debt except in so far as it is payable in respect of any period after the commencement of the bankruptcy.
(3) The trustee shall estimate the value of any bankruptcy debt which, by reason of its being subject to any contingency or contingencies or for any other reason, does not bear a certain value.
(4) Where the value of a bankruptcy debt is estimated by the trustee under subsection (3) or, by virtue of section 303 in Chapter III, by the court, the amount provable in the bankruptcy in respect of the debt is the amount of the estimate.
(1) This section applies where before the commencement of the bankruptcy there have been mutual credits, mutual debts or other mutual dealings between the bankruptcy and any creditor of the bankrupt proving or claiming to prove for a bankruptcy debt.
(2) An account shall be taken of what is due from each party to the other in respect of the mutual dealings and the sums due from one party shall be set off against the sums due from the other.
(3) Sums due from the bankrupt to another party shall not be included in the account taken under subsection (2) if that other party had notice at the time they became due that proceedings on a bankruptcy application relating to the bankrupt were ongoing or that a bankruptcy petition relating to the bankrupt was pending.
(4) Only the balance (if any) of the account taken under subsection (2) is provable as a bankruptcy debt or, as the case may be, to be paid to the trustee as part of the bankrupt’s estate.
(1) Whenever the trustee has sufficient funds in hand for the purpose he shall, subject to the retention of such sums as may be necessary for the expenses of the bankruptcy, declare and distribute dividends among the creditors in respect of the bankruptcy debts which they have respectively proved.
(2) The trustee shall give notice of his intention to declare and distribute a dividend.
(3) Where the trustee has declared a dividend, he shall give notice of the dividend and of how it is proposed to distribute it; and a notice given under this subsection shall contain the prescribed particulars of the bankrupt’s estate.
(4) In the calculation and distribution of a dividend the trustee shall make provision—
(a) for any bankruptcy debts which appear to him to be due to persons who, by reason of the distance of their place of residence, may not have had sufficient time to tender and establish their proofs,
(b) for any bankruptcy debts which are the subject of claims which have not yet been determined, and
(c) for disputed proofs and claims.
(1) A creditor who has not proved his debt before the declaration of any dividend is not entitled to disturb, by reason that he has not participated in it, the distribution of that dividend or any other dividend declared before his debt was proved, but—
(a) when he has proved that debt he is entitled to be paid, out of any money for the time being available for the payment of any further dividend, any dividend or dividends which he has failed to receive; and
(b) any dividend or dividends payable under paragraph (a) shall be paid before that money is applied to the payment of any such further dividend.
(2) No action lies against the trustee for a dividend,but if the trustee refuses to pay a dividend the court may, if it thinks fit, order him to pay it and also to pay, out of his own money—
(a) interest on the dividend, at the rate for the time being specified in section 17 of the JudgmentsAct 1838, from the time it was withheld, and
(b) the costs of the proceedings in which the order to pay is made.
(1) Without prejudice to sections 315 to 319 (disclaimer), the trustee may, with the permission of the creditors’ committee, divide in its existing form amongst the bankrupt’s creditors, according to its estimated value, any property which from its peculiar nature or other special circumstances cannot be readily or advantageously sold.
(2) A permission given for the purposes of subsection (1) shall not be a general permission but shall relate to a particular proposed exercise of the power in question; and a person dealing with the trustee in good faith and for value is not to be concerned to enquire whether any permission required by subsection (1) has been given.
(3) Where the trustee has done anything without the permission required by subsection (1), the court or the creditors’ committee may, for the purpose of enabling him to meet his expenses out of the bankrupt’s estate, ratify what the trustee has done.
But the committee shall not do so unless it is satisfied that the trustee acted in a case of urgency and has sought its ratification without undue delay.
Where the bankruptcy order was made on a petition under section 264(1)(d) (criminal bankruptcy), no distribution shall be made under sections 324 to 326 so long as an appeal is pending (within the meaning of section 277) against the bankrupt’s conviction of any offence by virtue of which the criminal bankruptcy order on which the petition was based was made.
(1) In the distribution of the bankrupt’s estate, his preferential debts ... shall be paid in priority to other debts.
(1A) Ordinary preferential debts rank equally among themselves after the expenses of the bankruptcy and shall be paid in full, unless the bankrupt’s estate is insufficient to meet them, in which case they abate in equal proportions between themselves.
(1B) Secondary preferential debts rank equally among themselves after the ordinary preferential debts and shall be paid in full, unless the bankrupt’s estate is insufficient to meet them, in which case they abate in equal proportions between themselves.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Debts which are neither preferential debts nor debts to which the next section applies also rank equally between themselves and, after the preferential debts, shall be paid in full unless the bankrupt’s estate is insufficient for meeting them, in which case they abate in equal proportions between themselves.
(3A) If the bankrupt is a relevant financial institution, subsection (3) does not apply but—
(a) the bankrupt’s ordinary non-preferential debts shall be paid in priority to the bankrupt’s secondary non-preferential debts,
(b) the bankrupt’s ordinary non-preferential debts rank equally among themselves after the secondary preferential debts and shall be paid in full, unless the bankrupt’s estate is insufficient to meet them, in which case they abate in equal proportions,
(c) the bankrupt’s secondary non-preferential debts shall be paid in priority to the bankrupt’s tertiary non-preferential debts, and
(d) the bankrupt’s secondary non-preferential debts rank equally among themselves after the ordinary non-preferential debts and shall be paid in full, unless the bankrupt’s estate is insufficient to meet them, in which case they abate in equal proportions.
See section 387A for definitions relevant to this subsection.
(4) Any surplus remaining after the payment of the debts —
(a) where subsection (3) applies, that are preferential or rank equally under that subsection, or
(b) where subsection (3A) applies, that are preferential or are referred to in that subsection,
shall be applied in paying interest on those debts in respect of the periods during which they have been outstanding since the commencement of the bankruptcy; and interest on preferential debts ranks equally with interest on debts other than preferential debts.
(5) The rate of interest payable under subsection (4) in respect of any debt is whichever is the greater of the following—
(a) the rate specified in section 17 of the Judgments Act 1838 at the commencement of the bankruptcy, and
(b) the rate applicable to that debt apart from the bankruptcy.
(6) This section and the next are without prejudice to any provision of this Act or any other Act under which the payment of any debt or the making of any other payment is, in the event of bankruptcy, to have a particular priority or to be postponed.
(7) In this section “preferential debts”, “ordinary preferential debts” and “secondary preferential debts” each has the meaning given in section 386 in Part 12.
(1) This section applies to bankruptcy debts owed in respect of credit provided by a person who (whether or not the bankrupt’s spouse or civil partner at the time the credit was provided) was the bankrupt’s spouse or civil partner at the commencement of the bankruptcy.
(2) Such debts—
(a) rank in priority after the ... interest required to be paid in pursuance of section 328(4), and
(b) are payable with interest at the rate specified in section 328(5) in respect of the period during which they have been outstanding since the commencement of the bankruptcy;
and the interest payable under paragraph (b) has the same priority as the debts on which it is payable.