Source: https://www.legislation.gov.uk/ukpga/1986/45/part/IX/chapter/V
Timestamp: 2019-07-20 12:39:25
Document Index: 371277629

Matched Legal Cases: ['art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 5', 'art. 16', 'art. 16', 'art. 16', 'art. 14', 'art. 4', 'art. 16', 'art. 6', 'art. 17', 'art. 6', 'art. 7', 'art. 8', 'art. 8', 'art. 14', 'art. 11', 'art. 12', 'art. 13', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 3', 'Art. 23', 'Art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 3', 'Art. 23', 'Art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'Art. 23', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 3', 'Art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'Art. 23', 'Art. 23', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'Art. 23', 'art. 3', 'Art. 23', 'art. 3', 'art. 2', 'Art. 23', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 3', 'Art. 23', 'Art. 23', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art. 3', 'art. 3', 'art. 2', 'art 1', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art 1', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 3', 'art. 3', 'art. 2']

Insolvency Act 1986Insolvency Act 1986
26/07/1994- Amendment
06/04/1996- Amendment
26/03/2002- Amendment
Changes and effects yet to be applied to Part IX Chapter V:
First Group of Parts amendment to earlier affecting provision S.I. 2006/3107, art. 3, Sch. by S.I. 2018/208 reg. 11
Act Amendment to earlier affecting provision SI 2011/245, reg. 15 by S.I. 2017/1064 Sch. para. 36(4)
Act amendment to earlier affecting provision S.I. 1986/1999, art. 3, Sch. 1 Pt. 2 by S.I. 2017/1119 Sch. 3 para. 1
Act amendment to earlier affecting provision S.I. 2001/1090, Sch. 3 by S.I. 2017/1119 Sch. 1 para. 37-53
Act amendment to earlier affecting provision S.I. 2011/245, regs. 8(7), 9, 15, 16-21, 24, 25, Schs. 1-4 by S.I. 2018/208 reg. 13
Act amendment to earlier affecting provision S.I. 2011/245. reg. 8(7), 9, 15, 16-21, 24, 25, Schs. 1-4 by S.I. 2017/400 reg. 10
Act amendment to earlier affecting provision S.I. 2013/1388, Sch. 2 by S.I. 2017/400 reg. 11(2)
Act amendment to earlier affecting provision S.I. 2013/1388, Sch. 2 by S.I. 2018/208 reg. 14
Act applied (with modifications) by S.I. 2017/1212 reg. 166(2) 167(2) Sch. 2 3
Act applied in part (with modifications) by 2017 c. 19 s. 6(2)(b)s. 6(3) 9-12
Act excluded by S.I. 2018/1135 rule 4.10(2)
Act modified by 1986 c. 46 s. 22H(4)(g) (as inserted) by S.I. 2017/1212 Sch. 4 para. 3
Act modified by S.I. 2012/3013, Sch. 2 para. 34 (as inserted) by S.I. 2018/728 reg. 3(6) Sch. 2
Act modified in part by S.I. 2019/138 reg. 4-6
Act power to modify or exclude conferred by 2017 c. 19 s. 6(2)(a)(3)(4)
Act specified provisions applied (with modifications) by 2013 c. 33 Sch. 6 para. 5
Pt. 12-19 amendment to earlier affecting provision S.I. 2001/1090, reg. 5, Schs. 3, 4 by S.I. 2017/1119 Sch. 1 Pt. 2 3
Pt. 2 amendment to earlier affecting provision S.I. 2010/3023, art. 2, Sch. by S.I. 2017/400 reg. 9
Pt. 2 amendment to earlier affecting provision S.I. 2010/3023, art. 2, Sch. by S.I. 2018/208 reg. 12
Pt. 2 amendment to earlier affecting provision S.I. 2014/229, art. 2(2) Sch. 1 Pts. 1, 3, 4 by S.I. 2018/208 reg. 15(3)(b)
Pt. 2 words substituted by S.I. 2019/146 Sch. para. 45(2) (This amendment is to 1986 c. 45, Pt. 2 as that Part had effect immediately before the coming into force of 2002 c. 40, s. 248 and in so far as it continues to have effect)
s. 4(4)(d) and word inserted by S.I. 2018/1244 art. 5(b)
s. 5A applied (with modifications) by S.I. 1994/2421, art. 16, Sch. 8 (as amended) by S.I. 2017/1119 Sch. 2 para. 4
s. 12C applied (with modifications) by S.I. 1994/2421, art. 16, Sch. 8 (as amended) by S.I. 2017/1119 Sch. 2 para. 4
s. 13-15C applied (with modifications) by S.I. 1994/2421, art. 16, Sch. 8 (as amended) by S.I. 2017/1119 Sch. 2 para. 4
s. 41HB(2) words substituted by 2018 c. 14 s. 1(3)(b)
s. 106(4A)(4B) amendment by S.I. 2017/702, Sch. para. 3 extended to Scotland by S.I. 2019/816 reg. 6(2)
s. 106(4A)(4B) omitted by S.I. 2019/146 Sch. para. 18
s. 106(7)(8) omitted by S.I. 2019/146 Sch. para. 134
s. 146(6)(7) amendment by S.I. 2017/702, Sch. para. 7 extended to Scotland by S.I. 2019/816 reg. 6(2)
s. 146(6)(7) omitted by S.I. 2019/146 Sch. para. 22
s. 146A omitted by S.I. 2019/146 Sch. para. 23
s. 172(9)(10) omitted by S.I. 2019/146 Sch. para. 135
s. 176AZA applied (with modifications) by 2009 (c. 1), s. 103 Table (as amended) by S.I. 2018/1244 art. 14(1)
s. 176AZA applied (with modifications) by S.I. 1994/2421, art. 4(3)(za) (as inserted) by S.I. 2018/1244 art. 16
s. 176AZA applied (with modifications) by S.I. 1994/2421, art. 6(5)(za) (as inserted) by S.I. 2018/1244 art. 17
s. 176AZA and cross-heading inserted by S.I. 2018/1244 art. 6
s. 201(2)(2A)(2B) amendments by S.I. 2017/702, Sch. para. 9 extended to Scotland by S.I. 2019/816 reg. 6(2)
s. 201(2A)(2B) omitted by S.I. 2019/146 Sch. para. 136(b)
s. 202(2A)(2B) omitted by S.I. 2019/146 Sch. para. 25(2)
s. 202(6)(7) omitted by S.I. 2019/146 Sch. para. 25(5)
s. 202(8) words omitted by S.I. 2019/146 Sch. para. 25(6)
s. 204(4A)-(4E) omitted by S.I. 2019/146 Sch. para. 137
s. 205(2)(2A)(2B) amendments by S.I. 2017/702, Sch. para. 12 extended to Scotland by S.I. 2019/816 reg. 6(2)
s. 205(2A)(2B) omitted by S.I. 2019/146 Sch. para. 26(3)
s. 205(2A)(2B) omitted by S.I. 2019/146 Sch. para. 138(b)
s. 210(2A)(2B) omitted by S.I. 2019/146 Sch. para. 24(3)
s. 258(5)(d) and word inserted by S.I. 2018/1244 art. 7(b)
s. 263I(1)(ab) inserted by S.I. 2019/146 Sch. para. 31(2)(a)
s. 263I(5) inserted by S.I. 2019/146 Sch. para. 31(3)
s. 265(1)(ab) inserted by S.I. 2019/146 Sch. para. 33(2)(a)
s. 265(5) inserted by S.I. 2019/146 Sch. para. 33(3)
s. 328(3A) inserted by S.I. 2018/1244 art. 8(2)
s. 328(4)(a)(b) s. 328(4)(a)(b) substituted for words in s. 328(4) by S.I. 2018/1244 art. 8(3)
s. 387A applied (with modifications) by 2009 (c. 1), s. 103 Table (as amended) by S.I. 2018/1244 art. 14(2)
s. 387A inserted by S.I. 2018/1244 art. 11
s. 422A inserted by S.I. 2019/146 Sch. para. 41
Sch. A1 para. 31(5)(d) and word inserted by S.I. 2018/1244 art. 12(2)(b)
Sch. B1 para. 73(1)(e) and word inserted by S.I. 2018/1244 art. 13(3)(c)
Sch. B1 para. 84(1A)(1B) omitted by S.I. 2019/146 Sch. para. 44(a)(i)
Sch. B1 para. 84(6A)(6B) omitted by S.I. 2019/146 Sch. para. 44(a)(iv)
Sch. 6 para. 15BB modified by S.I. 2019/680 reg. 11(3)(4)(6)
Sch. 6 para. 15BB(a) words substituted by S.I. 2018/1394 Sch. 2 para. 2(a)(i)
Sch. 6 para. 15BB(a) words substituted by S.I. 2018/1394 Sch. 2 para. 2(a)(ii)
Sch. 6 para. 15BB(b) words substituted by S.I. 2018/1394 Sch. 2 para. 2(b)
Chapter VE+W Effect of Bankruptcy on Certain Rights Transacttions, Etc.
[F1 Rights under trusts of landE+W
F1S. 335A and preceding cross-heading inserted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 23 (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2
F2335A Rights under trusts of land.E+W
(1)Any application by a trustee of a bankrupt’s estate under section 14 of the Trusts of Land and Appointment of Trustees Act 1996 (powers of court in relation to trusts of land) for an order under that section for the sale of land shall be made to the court having jurisdiction in relation to the bankruptcy.
(2)On such an application the court shall make such order as it thinks just and reasonable having regard to—
(a)the interests of the bankrupt’s creditors;
(b)where the application is made in respect of land which includes a dwelling house which is or has been the home of the bankrupt or the [F3bankrupt’s spouse or civil partner or former spouse or former civil partner]—
(i)the conduct of the [F4spouse, civil partner, former spouse or former civil partner], so far as contributing to the bankruptcy,
(ii)the needs and financial resources of the [F4spouse, civil partner, former spouse or former civil partner], and
(iii)the needs of any children; and
(c)all the circumstances of the case other than the needs of the bankrupt.
(3)Where such an application is made after the end of the period of one year beginning with the first vesting under Chapter IV of this Part of the bankrupt’s estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt’s creditors outweigh all other considerations.
(4)The powers conferred on the court by this section are exercisable on an application whether it is made before or after the commencement of this section.]
F2S. 335A and preceding cross-heading inserted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 23 (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2
F3Words in s. 335A(2)(b) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 261(1), 263, Sch. 27 para. 118(a); S.I. 2005/3175, art. 2(2) (subject to art. 2(3)-(5))
F4Words in s. 335A(2)(b)(i)(ii) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 261(1), 263, Sch. 27 para. 118(b); S.I. 2005/3175, art. 2(2) (subject to art. 2(3)-(5))
Rights of occupationE+W
336 Rights of occupation etc. of bankrupt’s spouse [F5or civil partner].E+W
(1)Nothing occurring in the initial period of the bankruptcy (that is to say, the period beginning with the day of the [F6making of the bankruptcy application or (as the case may be) the presentation of the bankruptcy petition] and ending with the vesting of the bankrupt’s estate in a trustee) is to be taken as having given rise to any [F7[F8home rights] under Part IV of the Family Law Act 1996] in relation to a dwelling house comprised in the bankrupt’s estate.
(2)Where [F9a spouse’s or civil partner’s home rights][F10under the Act of 1996] are a charge on the estate or interest of the other spouse [F11or civil partner], or of trustees for the other spouse [F11or civil partner], and the other spouse [F11or civil partner] is [F12made] bankrupt—
(a)the charge continues to subsist notwithstanding the bankruptcy and, subject to the provisions of that Act, binds the trustee of the bankrupts’s estate and persons deriving title under the trustee, and
(b)any application for an order [F13under section 33 of that Act] shall be made to the court having jurisdiction in relation to the bankruptcy.
(4)On such an application as is mentioned in subsection (2) F15. . . the court shall make such order under [F16section 33 of the Act of 1996]. . . as it thinks just and reasonable having regard to—
(a)the interests of the bankrupt’s creditors,
(b)the conduct of the spouse or former spouse [F17or civil partner or former civil partner], so far as contributing to the bankruptcy,
(c)the needs and financial resources of the spouse or former spouse [F17or civil partner or former civil partner],
(d)the needs of any children, and
(e)all the circumstances of the case other than the needs of the bankrupt.
(5)Where such an application is made after the end of the period of one year beginning with the first vesting under Chapter IV of this Part of the bankrupt’s estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt’s creditors outweigh all other considerations.
F5Words in heading to s. 336 inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 21(5); S.I. 2005/3175, art. 2(1), Sch. 1
F6Words in s. 336(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 29(2); S.I. 2016/191, art. 2 (with art. 3)
F7Words in s. 336(1) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(2) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
F8Words in s. 336(1) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 21(2); S.I. 2005/3175, art. 2(1), Sch. 1
F9Words in s. 336(2) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 21(3)(a); S.I. 2005/3175, art. 2(1), Sch. 1
F10Words in s. 336(2) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(3)(a) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
F11Words in s. 336(2) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 21(3)(b); S.I. 2005/3175, art. 2(1), Sch. 1
F12Word in s. 336(2) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 29(3); S.I. 2016/191, art. 2 (with art. 3)
F13Words in s. 336(2)(b) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(3)(b) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
F14S. 336(3) repealed (1.1.1997) by 1996 c. 47, s. 25(2), Sch. 4 (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2
F15Words in s. 336(4) repealed (1.1.1997) by 1996 c. 47, s. 25(2), Sch. 4 (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2
F16Words in s. 336(4) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(4) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
F17Words in s. 336(4)(b)(c) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 21(4); S.I. 2005/3175, art. 2(1), Sch. 1
337 Rights of occupation of bankrupt.E+W
(a)a person who is entitled to occupy a dwelling house by virtue of a beneficial estate or interest is [F18made] bankrupt, and
(b)any persons under the age of 18 with whom that person had at some time occupied that dwelling house had their home with that person at the time when the [F19bankruptcy application was made or (as the case may be) the] bankruptcy petition was presented and at the commencement of the bankruptcy.
(2)Whether or not the bankrupt’s [F20spouse or civil partner (if any) has home rights][F21under Part IV of the Family Law Act 1996]—
(a)the bankrupt has the followng rights as against the trustee of his estate—
(i)if in occupation, a right not to be evicted or excluded from the dwelling house or any part of it, except with the leave of the court,
(ii)if not in occupation, a right with the leave of the court to enter into and occupy the dwelling house, and
(b)the bankrupt’s rights are a charge, having the like priority as an equitable interest created immediately before the commencement of the bankruptcy, on so much of his estate or interest in the dwelling house as vests in the trustee.
[F22(3)The Act of 1996 has effect, with the necessary modifications, as if—
(a)the rights conferred by paragraph (a) of subsection (2) were [F23home rights] under that Act,
(b)any application for such leave as is mentioned in that paragraph were an application for an order under section 33 of that Act, and
(c)any charge under paragraph (b) of that subsection on the estate or interest of the trustee were a charge under that Act on the estate or interest of a spouse [F24or civil partner].]
(4)Any application for leave such as is mentioned in subsection (2)(a) or otherwise by virtue of this section for an order under [F25section 33 of the Act of 1996] shall be made to the court having jurisdiction in relation to the bankruptcy.
(5)On such an application the court shall make such order under [F25section 33 of the Act of 1996] as it thinks just and reasonable having regard to the interests of the creditors, to the bankrupt’s financial resources, to the needs of the children and to all the circumstances of the case other than the needs of the bankrupt.
(6)Where such an application is made after the end of the period of one year beginning with the first vesting (under Chapter IV of this Part) of the bankrupt’s estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt’s creditors outweigh all other considerations.
F18Word in s. 337(1)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 30(a); S.I. 2016/191, art. 2 (with art. 3)
F19Words in s. 337(1)(b) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 30(b); S.I. 2016/191, art. 2 (with art. 3)
F20Words in s. 337(2) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 22(2); S.I. 2005/3175, art. 2(1), Sch. 1
F21Words in s. 337(2) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 58(2) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
F22S. 337(3) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 58(3) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
F23Words in s. 337(3)(a) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 22(3)(a); S.I. 2005/3175, art. 2(1), Sch. 1
F24Words in s. 337(3)(c) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 22(3)(b); S.I. 2005/3175, art. 2(1), Sch. 1
F25Words in s. 337(4)(5) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 58(4) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)
338 Payments in respect of premises occupied by bankrupt.E+W
Where any premises comprised in a bankrupt’s estate are occupied by him (whether by virtue of the preceding section or otherwise) on condition that he makes payments towards satisfying any liability arising under a mortgage of the premises or otherwise towards the outgoings of the premises, the bankrupt does not, by virtue of those payments, acquire any interest in the premises.
Adjustment of prior transactions, etc.E+W
339 Transactions at an undervalue.E+W
(1)Subject as follows in this section and sections 341 and 342, where an individual is [F26made] bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the court for an order under this section.
(2)The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.
(3)For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if—
(a)he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration,
(b)he enters into a transaction with that person in consideration of marriage [F27or the formation of a civil partnership], or
F26Word in s. 339(1) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 31; S.I. 2016/191, art. 2 (with art. 3)
F27Words in s. 339(3)(b) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 261(1), 263, Sch. 27 para. 119; S.I. 2005/3175, art. 2(2) (subject to art. 2(3)-(5))
C1S.339 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
S. 339 applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, Sch. 1 Art. 23 paras. 1-3 (subject to Sch. 1 Art. 23 paras. 6-9)
C2S. 339 restricted by Drug Trafficking Offences Act 1986 (c.32, SIF 39:1), s. 15(6)(a)(7)
S. 339 restricted by Criminal Justice (Scotland) Act 1987 (c. 41, SIF 39:1), ss. 30(6), 34(5)(a), 47(4)(a)
S. 339 restricted (25.4.1991) by Companies Act 1989 (c. 40), s. 182(4), Sch. 22 para. 8(1)(a); S.I. 1991/878, art. 2, Sch.
S. 339 restricted by 1986 c. 32, s. 15(6)(a)(b) (as substituted (prosp.) by 1993 c. 36, ss. 13(9), 78(3) (with s. 78(6)) (which amending provision was repealed (3.2.1995) by 1994 c. 37, ss. 67, 69(2), Sch. 3))
S. 339 restricted (3.2.1995) by 1994 c. 37, ss. 32(5)(a), 69(2), Sch. 2 para. 5 (with s. 66(2))
S. 339 restricted (1.11.1995) by 1988 c. 33, s. 84(6)(a) (as substituted by 1995 c. 11, s. 8(7) (with s. 16(5)(6)); S.I. 1995/2650, art. 2)
S. 339 restricted (1.4.1996) by 1995 c. 43, ss. 44, 50(2), Sch. 2 para. 2(5)
S. 339 restricted (11.12.1999) by S.I. 1999/2979, reg. 17(1)
S. 339 restricted (24.3.2003) by 2002 c. 29, ss. 419(1)-(4), 458(1)(3); S.I. 2003/333, art. 2, Sch. (subject to arts. 3-13 (as amended by S.I. 2003/531, arts. 3, 4))
C3S. 339 excluded (25.4.1991) by Companies Act 1989 (c. 40), ss. 154, 155, 165(1)(a); S.I. 1991/878, art. 2, Sch.
C4S. 339 modified (3.2.1995) by 1994 c. 37, ss. 32(5)(b), 69(2), Sch. 2 para. 5 (with s. 66(2))
340 Preferences.E+W
(1)Subject as follows in this and the next two sections, where an individual is [F28made] bankrupt and he has at a relevant time (defined in section 341) given a preference to any person, the trustee of the bankrupt’s estate may apply to the court for an order under this section.
(2)The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not given that preference.
(3)For the purposes of this and the next two sections, an individual gives a preference to a person if—
(a)that person is one of the individual’s creditors or a surety or guarantor for any of his debts or other liabilities, and
(b)the individual does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event of the individual’s bankruptcy, will be better than the position he would have been in if that thing had not been done.
(4)The court shall not make an order under this section in respect of a preference given to any person unless the individual who gave the preference was influenced in deciding to give it by a desire to produce in relation to that person the effect mentioned in subsection (3)(b) above.
(5)An individual who has given a preference to a person who, at the time the preference was given, was an associate of his (otherwise than by reason only of being his employee) is presumed, unless the contrary is shown, to have been influenced in deciding to give it by such a desire as is mentioned in subsection (4).
(6)The fact that something has been done in pursuance of the order of a court does not, without more, prevent the doing or suffering of that thing from constituting the giving of a preference.
F28Word in s. 340(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 32; S.I. 2016/191, art. 2 (with art. 3)
C5S. 340 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
S. 340 applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, Sch. 1 Art. 23 paras. 1-3 (subject to Sch. 1 Art. 23 paras. 6-9)
C6S. 340 excluded (25.4.1991) by Companies Act 1989 (c. 40), ss. 154, 155, 165(1)(b); S.I. 1991/878, art. 2, Sch..
C7S. 340 restricted (25.4.1991) by Companies Act 1989 (c.40), ss. 182(4), Sch. 22 para. 8(1)(b); S.I. 1991/878, art. 2, Sch.
S. 340 restricted (11.12.1999) by S.I. 1999/2979, reg. 17(1)
S. 340 restricted (24.3.2003) by 2002 c. 29, ss. 419(1)-(4), 458(1)(3); S.I. 2003/333, art. 2, Sch. (subject to arts. 3-13 (as amended by S.I. 2003/531, arts. 3, 4))
341“Relevant time” under ss. 339, 340.E+W
(1)Subject as follows, the time at which an individual enters into a transaction at an undervalue or gives a preference is a relevant time if the transaction is entered into or the prefernce given—
(a)in the case of a transaction at an undervalue, at a time in the period of 5 years ending with the day of the [F29making of the bankruptcy application as a result of which, or (as the case may be) the presentation of the bankruptcy petition on which, the individual is made] bankrupt,
(b)in the case of a preference which is not a transaction at an undervalue and is given to a person who is an associate of the individual (otherwise than by reason only of being his employee), at a time in the period of 2 years ending with that day, and
(c)in any other case of a preference which is not a transaction at an undervalue, at a time in the period of 6 months ending with that day.
(2)Where an individual enters into a transaction at an undervalue or gives a preference at a time mentioned in paragraph (a), (b) or (c) of subsection (1) (not being, in the case of a transaction at an undervalue, a time less than 2 years before the end of the period mentioned in paragraph (a)), that time is not a relevant time for the purposes of sections 339 and 340 unless the individual—
(a)is insolvent at that time, or
(b)becomes insolvent in consequence of the transaction or preference;
but the requirements of this subsection are presumed to be satisfied, unless the contrary is shown, in relation to any transaction at an undervalue which is entered into by an individual with a person who is an associate of his (otherwise than by reason only of being his employee).
(3)For the purposes of subsection (2), an individual is insolvent if—
(a)he is unable to pay his debts as they fall due, or
(b)the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
(4)A transaction entered into or preference given by a person who is subsequently adjudged bankrupt on a petition under section 264(1)(d) (criminal bankruptcy) is to be treated as having been entered into or given at a relevant time for the purposes of sections 339 and 340 if it was entered into or given at any time on or after the date specified for the purposes of this subsection in the criminal bankruptcy order on which the petition was based.
(5)No order shall be made under section 339 or 340 by virtue of subsection (4) of this section where an appeal is pending (within the meaning of section 277) against the individual’s conviction of any offence by virtue of which the criminal bankruptcy order was made.
F29Words in s. 341(1)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 33; S.I. 2016/191, art. 2 (with art. 3)
C8S. 341 applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, {Sch. 1 Art. 23 paras. 2, 3}
C9S. 341 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(7)(d))
342 Orders under ss. 339, 340.E+W
(1)Without prejudice to the generality of section 339(2) or 340(2), an order under either of those sections with respect to a transaction or preference entered into or given by an individual who is subsequently [F30made] bankrupt may (subject as follows)—
(a)require any property transferred as part of the transaction, or in connection with the giving of the preference, to be vested in the trustee of the bankrupt’s estate as part of that estate;
(b)require any property to be so vested it if represents in any person’s hands the application either of the proceeds of sale of property so transferred or of money so transferred;
(c)release or discharge (in whole or in part) any security given by the individual;
(d)require any person to pay, in respect of benefits received by him from the individual, such sums to the trustee of his estate as the court may direct;
(f)provide for security to be provided for the discharge of any obligation imposed by or arising under the order, for such an obligation to be charged on any property and for the security or charge to have the same priority as a security or charge released or discharged (in whole or in part) under the transaction or by the giving of the preference; and
(g)provide for the extent to which any person whose property is vested by the order in the trustee of the bankrupt’s estate, or on whom obligations are imposed by the order, is to be able to prove in the bankruptcy for debts or other liabilities which arose from, or were released or discharged (in whole or in part) under or by, the transaction or the giving of the preference.
(2)An order under section 339 or 340 may affect the property of, or impose any obligation on, any person whether or not he is the person with whom the individual in question entered into the transaction or, as the case may be the person to whom the preference was given; but such an order—
(a)shall not prejudice any interest in property which was acquired from a person other than that individual and was acquired [F31in good faith and for value], or prejudice any interest deriving from such an interest, and
(b)shall not require a person who received a benefit from the transaction or preference [F31in good faith and for value] to pay a sum to the trustee of the bankrupt’s estate except where he was a party to the transaction or the payment is to be in respect of a preference given to that person at a time when he was a creditor of that individual.
[F32(2A)Where a person has acquired an interest in property from a person other than the individual in question, or has received a benefit from the transaction or preference, and at the time of that acquisition or receipt—
(a)he had notice of the relevant surrounding circumstances and of the relevant proceedings, or
(b)he was an associate of, or was connected with, either the individual in question or the person with whom that individual entered into the transaction or to whom that individual gave the preference,
then, unless the contrary is shown, it shall be presumed for the purposes of paragraph (a) or (as the case may be) paragraph (b) of subsection (2) that the interest was acquired or the benefit was received otherwise than in good faith.]
(3)Any sums required to be paid to the trustee in accordance with an order under section 339 or 340 shall be comprised in the bankrupt’s estate.
[F33(4)For the purposes of subsection (2A)(a), the relevant surrounding circumstances are (as the case may require)—
(a)the fact that the individual in question entered into the transaction at an undervalue; or
(b)the circumstances which amounted to the giving of the preference by the individual in question.
(5)For the purposes of subsection (2A)(a), a person has notice of the relevant proceedings if he has notice—
[F34(a)of the fact that the bankruptcy application as a result of which, or (as the case may be) the bankruptcy petition on which, the individual in question is made bankrupt has been made or presented; or]
(b)of the fact that the individual in question has been [F35made] bankrupt.
(6)Section 249 in Part VII of this Act shall apply for the purposes of subsection (2A)(b) as it applies for the purposes of the first Group of Parts.]
F30Word in s. 342(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 34(2); S.I. 2016/191, art. 2 (with art. 3)
F31Words in s. 342(2)(a)(b) substituted (26.7.1994) by 1994 c. 12, ss. 2(1), 5, 6(2) (with ss. 5, 6(3)
F32S. 342(2A) inserted (26.7.1994) by 1994 c. 12, ss. 2(2), 5, 6(2) (with ss. 5, 6(3))
F33S. 342(4)-(6) substituted for s. 342(4) (26.7.1994) by 1994 c. 12, ss. 2(3), 5, 6(2) (with ss. 5, 6(3))
F34S. 342(5)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 34(3)(a); S.I. 2016/191, art. 2 (with art. 3)
F35Word in s. 342(5)(b) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 34(3)(b); S.I. 2016/191, art. 2 (with art. 3)
C10Ss. 342-345 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
S. 342 applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, {Sch. 1 Art. 23 paras. 2, 3}
[F36[F37342A Recovery of excessive pension contributions.E+W
(1)Where an individual who is [F38made] bankrupt—
the trustee of the bankrupt’s estate may apply to the court for an order under this section.
(3)Subsection (4) applies where the court is satisfied that the value of the rights under the arrangement is, as a result of rights of the individual under the arrangement or any other pension arrangement having at any time become subject to a debit under section 29(1)(a) of the Welfare Reform and Pensions Act 1999 (debits giving effect to pension-sharing), less than it would otherwise have been.
(a)any relevant contributions which were represented by the rights which became subject to the debit shall, for the purposes of subsection (2), be taken to be contributions of which the rights under the arrangement are the fruits, and
(b)where the relevant contributions represented by the rights under the arrangement (including those so represented by virtue of paragraph (a)) are not all excessive contributions, relevant contributions which are represented by the rights under the arrangement otherwise than by virtue of paragraph (a) shall be treated as excessive contributions before any which are so represented by virtue of that paragraph.
(5)In subsections (2) to (4) “relevant contributions” means contributions to the arrangement or any other pension arrangement—
(6)The court shall, in determining whether it is satisfied under subsection (2)(b), consider in particular—
(7)For the purposes of this section and sections 342B and 342C (“the recovery provisions”), rights of an individual under an unapproved pension arrangement are excluded rights if they are rights which are excluded from his estate by virtue of regulations under section 12 of the Welfare Reform and Pensions Act 1999.
(8)In the recovery provisions—
“approved pension arrangement” has the same meaning as in section 11 of the Welfare Reform and Pensions Act 1999;
“unapproved pension arrangement” has the same meaning as in section 12 of that Act.]]
F36Ss. 342A-342C inserted (6.4.1996 for the purpose only of authorising the making of regulations) by 1995 c. 26, s. 95(1) (with s. 121(5)); S.I. 1996/778, art. 2(5)(a), Sch. Pt. V
F37Ss. 342A-342C substituted (11.11.1999 for certain purposes and otherwise 6.4.2002) by 1999 c. 30, ss. 15, 89(5)(a); S.I. 2002/153, art. 2(e)
F38Word in s. 342A(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 35; S.I. 2016/191, art. 2 (with art. 3)
C11S. 342A applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, Sch. 1 Art. 23 paras. 1-3 (subject to Sch. 1 Art. 23 paras. 6-9)
[F39[F40342B Orders under section 342A.E+W
(1)Without prejudice to the generality of section 342A(2), an order under section 342A may include provision—
(d)for the recovery by the person responsible for the arrangement (whether by deduction from any amount which that person is ordered to pay or otherwise) of costs incurred by that person in complying in the bankrupt’s case with any requirement under section 342C(1) or in giving effect to the order.
(2)In subsection (1), references to adjusting the liabilities of the arrangement in respect of a person include (in particular) reducing the amount of any benefit or future benefit to which that person is entitled under the arrangement.
(3)In subsection (1)(c), the reference to liabilities of the arrangement does not include liabilities in respect of a person which result from giving effect to an order or provision falling within section 28(1) of the Welfare Reform and Pensions Act 1999 (pension sharing orders and agreements).
(4)The maximum amount which the person responsible for an arrangement may be required to pay by an order under section 342A is the lesser of—
(5)An order under section 342A which requires the person responsible for an arrangement to pay an amount (“the restoration amount”) to the individual’s trustee in bankruptcy must provide for the liabilities of the arrangement to be correspondingly reduced.
(7)An order under section 342A in respect of an arrangement—
(b)overrides provisions of the arrangement to the extent that they conflict with the provisions of the order.]]
F39Ss. 342A-342C inserted (6.4.1996 for the purpose of authorising the making of regulations) by 1995 c. 26, s. 95(1) (with s. 121(5)); S.I. 1996/778, art. 2(5)(a), Sch. Pt. V
F40Ss. 342A-342C substituted (11.11.1999 for certain purposes and otherwise 6.4.2002) by 1999 c. 30, ss. 15, 89(5)(a); S.I. 2002/153, art. 2(e)
[F41[F42342C Orders under section 342A: supplementary.E+W
shall, on the bankrupt’s trustee in bankruptcy making a written request, provide the trustee with such information about the arrangement and rights as the trustee may reasonably require for, or in connection with, the making of applications under section 342A.
(a)any provision of section 159 of the Pension Schemes Act 1993 or section 91 of the Pensions Act 1995 (which prevent assignment and the making of orders that restrain a person from receiving anything which he is prevented from assigning),
applies to a court exercising its powers under section 342A.
(3)Where any sum is required by an order under section 342A to be paid to the trustee in bankruptcy, that sum shall be comprised in the bankrupt’s estate.
(a)any such value as is mentioned in section 342B(4)(b);
(b)any such amounts as are mentioned in section 342B(6)(a) and (b).
[F43(b)in accordance with guidance from time to time prepared by a prescribed person.]
(7)In this section and sections 342A and 342B—
“the recovery provisions” means this section and sections 342A and 342B;
(8)Regulations under the recovery provisions may—
(9)Regulations under the recovery provisions shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.]]
F41Ss. 342A-342C inserted (6.4.1996 for the purpose only of authorising the making of regulations) by 1995 c. 26, s. 95(1) (with s. 121(5)); S.I. 1996/778, art. 2(5)(a), Sch. Pt. V
F42Ss. 342A-342C substituted (11.11.1999 for certain purposes and otherwise 6.4.2002) by 1999 c. 30, ss. 15, 89(5)(a); S.I. 2002/153, art. 2(e)
F43S. 342C(5)(b) substituted (1.11.2007) by Pensions Act 2007 (c. 22), ss. 17, 30(2)(c), Sch. 5 para. 3; S.I. 2007/3063, {art. 2 (b)}
[F44342D Recovery of excessive contributions in pension-sharing cases.E+W
“transferor”, in relation to a pension-sharing transaction, means the person to whose rights the transaction relates.]
F44S. 342D inserted (26.3.2002 for specified purposes otherwise 6.4.2002) by 1999 c. 30, s. 85, Sch. 12 Pt II para. 71; S.I. 2002/818, art. 3
C12S. 342B-342F applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, {Sch. 1 Art. 23 paras. 2, 3}
F45342E Orders under section 339 or 340 in respect of pension-sharing transactions.E+W
F45S. 342E inserted (26.3.2002 for specified purposes otherwise 6.4.2002) by 1999 c. 30, s. 85, Sch. 12 Pt. II para. 71; S.I. 2002/818, art. 3
C13S. 342B-342F applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, {Sch. 1 Art. 23 paras. 2, 3}
F46342F Orders under section 339 or 340 in pension-sharing cases: supplementary.E+W
(a)any provision of section 159 of the M1Pension Schemes Act 1993 or section 91 of the M2Pensions Act 1995 (which prevent assignment and the making of orders which restrain a person from receiving anything which he is prevented from assigning),
[F47(b)in accordance with guidance from time to time prepared by a prescribed person.]
(11)Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
F46S. 342F inserted (26.3.2002 for specified purposes otherwise 6.4.2002) by 1999 c. 30, s. 15, Sch. 12 Pt. II para. 71; S.I. 2002/818, art. 3
F47S. 342F(7)(b) substituted (1.11.2007) by Pensions Act 2007 (c. 22), ss. 17, 30(2), Sch. 5 para. 4; S.I. 2007/3063, {art. 2 (b)}
C14S. 342B-342F applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, {Sch. 1 Art. 23 paras. 2, 3}
M11993 c. 48.
M21995 c. 26.
343 Extortionate credit transactions.E+W
(1)This section applies where a person is [F48made] bankrupt who is or has been a party to a transaction for, or involving, the provision to him of credit.
(2)The court may, on the application of the trustee of the bankrupt’s estate, make an order with respect to the transaction if the transaction is or was extortionate and was not entered into more than 3 years before the commencement of the bankruptcy.
(3)For the purposes of this section a transaction is extortionate if, having regard to the risk accepted by the person providing the credit—
(a)the terms of it are or were such as to require grossly exorbitant payments to be made (whether unconditionally or in certain contingencies) in respect of the provision of the credit, or
(b)it otherwise grossly contravened ordinary principles of fair dealing;
and it shall be presumed, unless the contrary is proved, that a transaction, with respect to which an application is made under this section is or, as the case may be, was extortionate.
(4)An order under this section with respect to any transaction may contain such one or more of the following as the court thinks fit, that is to say—
(b)provision otherwise varying the terms of the transaction or varying the terms on which any security for the purposes of the transaction is held;
(c)provision requiring any person who is or was party to the transaction to pay to the trustee any sums paid to that person, by virtue of the transaction, by the bankrupt;
(d)provision requiring any person to surrender to the trustee any property held by him as security for the purposes of the transaction;
(e)provision directing accounts to be taken between any persons.
(5)Any sums or property required to be paid or surrendered to the trustee in accordance with an order under this section shall be comprised in the bankrupt’s estate.
(6)F49. . .
F49. . . the powers conferred by this section are exercisable in relation to any transaction concurrently with any powers exerciseable under this Act in relation to that transaction as a transaction at an undervalue.
F48Word in s. 343(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 36; S.I. 2016/191, art. 2 (with art. 3)
F49Words in s. 343(6) repealed (6.4.2007) by Consumer Credit Act 2006 (c. 14), ss. 69(1), 70, 71, Sch. 4 (with Sch. 3 para. 15(5)); S.I. 2007/123, art. 3(2), Sch. 2 (as amended by S.I. 2007/387, art. 2(3)(e)(iii))
C15Ss. 342-345 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
S. 343 applied (with modifications) (4.4.2006) by The Cross-Border Insolvency Regulations 2006 (S.I. 2006/1030), reg. 2, Sch. 1 Art. 23 paras. 1-3 (subject to Sch. 1 Art. 23 paras. 6-9)
344 Avoidance of general assignment of book debts.E+W
(1)The following applies where a person engaged in any business makes a general assignment to another person of his existing or future book debts, or any class of them, and is subsequently [F50made] bankrupt.
(2)The assignment is void against the trustee of the bankrupt’s estate as regards book debts which were not paid before the [F51making of the bankruptcy application or (as the case may be) the] presentation of the bankruptcy petition, unless the assignment has been registered under the M3Bills of Sale Act 1878.
(a)“assignment” includes an assignment by way of security or charge on book debts, and
(b)“general assignment” does not include—
(i)an assignment of book debts due at the date of the assignment from specified debtors or of debts becoming due under specified contracts, or
(ii)an assignment of book debts included either in a transfer of a business made in good faith and for value or in an assignment of assets for the benefit of creditors generally.
(4)For the purposes of registration under the Act of 1878 an assignment of book debts is to be treated as if it were a bill of sale given otherwise than by way of security for the payment of a sum of money; and the provisions of that Act with respect to the registration of bills of sale apply accordingly with such necessary modifications as may be made by rules under that Act.
F50Word in s. 344(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 37(2); S.I. 2016/191, art. 2 (with art. 3)
F51Words in s. 344(2) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 37(3); S.I. 2016/191, art. 2 (with art. 3)
C16Ss. 342–345 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
M31878 c. 31.
345 Contracts to which bankrupt is a party.E+W
(1)The following applies where a contract has been made with a person who is subsequently [F52made] bankrupt.
(2)The court may, on the application of any other paty to the contract, make an order discharging obligations under the contract on such terms as to payment by the applicant or the bankrupt of damages for non-performance or otherwise as appear to the court to be equitable.
(3)Any damages payable by the bankrupt by virtue of an order of the court under this section are provable as a bankruptcy debt.
(4)Where an undischarged bankrupt is a contractor in respect of any contract jointly with any person, that person may sue or be sued in respect of the contract without the joinder of the bankrupt.
F52Word in s. 345(1) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 38; S.I. 2016/191, art. 2 (with art. 3)
C17Ss. 342–345 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
C18S. 345 excluded (25.4.1991) by Companies Act 1989 (c. 40), ss. 154, 155, 164(1), 182(4), Sch. 22 para. 7(1); S.I. 1991/878, art. 2, Sch. .
S. 345 excluded (11.12.1999) by S.I. 1999/2979, reg. 16(1)
346 Enforcement procedures.E+W
(1)Subject to section 285 in Chapter II (restriction on proceedings and remedies) and to the following provisions of this section, where the creditor of any person who is [F53made] bankrupt has, before the commencement of the bankruptcy—
(a)issued execution against the goods or land of that person, or
(b)attached a debt due to that person from another person,
that creditor is not entitled, as against the official reciever or trustee of the bankrupt’s estate, to retain the benefit of the execution or attachment, or any sums paid to avoid it, unless the execution or attachment was completed, or the sums were paid, before the commencement of the bankruptcy.
[F54(1A)For the purposes of this section, Her Majesty's Revenue and Customs is to be regarded as having attached a debt due to a person if it has taken action under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by deduction from accounts) as a result of which an amount standing to the credit of an account held by that person is—
(a)subject to arrangements made under paragraph 6(3) of that Schedule, or
(b)the subject of a deduction notice under paragraph 13 of that Schedule.]
(2)Subject as follows, where any goods of a person have been taken in execution, then, if before the completion of the execution notice is given to the [F55enforcement officer] or other officer charged with the execution that that person has been [F53made] bankrupt—
(a)the [F55enforcement officer] or other officer shall on request deliver to the official receiver or trustee of the bankrupt’s estate the goods and any money seized or recovered in part satisfaction of the execution, but
(b)the costs of the execution are a first charge on the goods or money so delivered and the official receiver or trustee may sell the goods or a sufficient part of them for the purpose of satisfying the charge.
(3)Subject to subsection (6) below, where—
(a)under an execution in respect of a judgment for a sum exceeding such sum as may be prescribed for the purposes of this subsection, the goods of any person are sold or money is paid in order to avoid a sale, and
(b)before the end of the period of 14 days beginning with the day of the sale or payment the [F55enforcement officer] or other officer charged with the execution is given notice that a [F56bankruptcy application has been made or a] bankruptcy petition has been presented in relation to that person, and
(c)a bankruptcy order is or has been made [F57as a result of that application or] on that petition,
the balance of the proceeds of sale or money paid, after deducting the costs of execution, shall (in priority to the claim of the execution creditor) be comprised in the bankrupt’s estate.
(4)Accordingly, in the case of an execution in respect of a judgment for a sum exceeding the sum prescribed for the purposes of subsection (3), the [F55enforcement officer] or other officer charged with the execution—
(a)shall not dispose of the balance mentioned in subsection (3) at any time within the period of 14 days so mentioned or while [F58proceedings on a bankruptcy application are ongoing or (as the case may be)] there is pending a bankruptcy petition of which he has been given notice under that subsection, and
(b)shall pay that balance, where by virtue of that subsection it is comprised, in the bankrupt’s estate, to the official receiver or (if there is one) to the trustee or that estate.
(a)an execution against goods is completed by seizure and sale or by the making of a charging order under section 1 of the M4Charging Orders Act 1979;
(b)an execution against land is completed by seizure, by the appointment of a receiver or by the making of a charging order under that section;
(c)an attachment of a debt is completed by the receipt of the debt.
(6)The rights conferred by subsections (1) to (3) on the official receiver or the trustee may, to such extent and on such terms as it thinks fit, be set aside by the court in favour of the creditor who has issued the execution or attached the debt.
(7)Nothing in this section entitles the trustee of a bankrupt’s estate to claim goods from a person who has acquired them in good faith under a sale by [F59an enforcement officer] or other officer charged with an execution.
(8)Neither subsection (2) nor subsection (3) applies in relation to any execution against property which has been acquired by or has devolved upon the bankrupt since the commencement of the bankruptcy, unless, at the time the execution is issued or before it is completed—
(a)the property has been or is claimed for the bankrupt’s estate under section 307 (after-acquired property), and
(b)a copy of the notice given under that section has been or is served on the [F55enforcement officer] or other officer charged with the execution.
[F60(9)In this section “enforcement officer” means an individual who is authorised to act as an enforcement officer under the Courts Act 2003.]
F53Word in s. 346(1)(2) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 39(2); S.I. 2016/191, art. 2 (with art. 3)
F54S. 346(1A) inserted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 32
F55Words in s. 346(2)(3)(b)(4)(8)(b) substituted (15.3.2004) by Courts Act 2003 (c. 39), ss. 109(1), 110, Sch. 8 para. 297(2); S.I. 2004/401, art. 2 (with art. 3)
F56Words in s. 346(3)(b) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 39(3)(a); S.I. 2016/191, art. 2 (with art. 3)
F57Words in s. 346(3)(c) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 39(3)(b); S.I. 2016/191, art. 2 (with art. 3)
F58Words in s. 346(4)(a) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 39(4); S.I. 2016/191, art. 2 (with art. 3)
F59Words in s. 346(7) substituted (15.3.2004) by Courts Act 2003 (c. 39), ss. 109(1), 110, Sch. 8 para. 297(3); S.I. 2004/401, art. 2 (with art. 3)
F60S. 346(9) inserted (15.3.2004) by Courts Act 2003 (c. 39), ss. 109(1), 110, Sch. 8 para. 297(4); S.I. 2004/401, art. 2 (with art. 3)
M41979 c. 53.
347 Distress, etc.E+W
(1)[F61CRAR (the power of commercial rent arrears recovery under section 72(1) of the Tribunals, Courts and Enforcement Act 2007) is exercisable where the tenant is an undischarged bankrupt] (subject to [F62sections 252(2)(b) and 254(1) above and] subsection (5) below) against goods and effects comprised in the bankrupt’s estate, but only for 6 months’ rent accrued due before the commencement of the bankruptcy.
(2)[F63Where CRAR has been exercised to recover rent from] an individual to whom [F64a bankruptcy application or] a bankruptcy petition relates and a bankruptcy order is subsequently made [F65as a result of that application or] on that petition, any amount recovered by way of [F66CRAR] which—
(a)is in excess of the amount which by virtue of subsection (1) would have been recoverable after the commencement of the bankruptcy, or
(b)is in respect of rent for a period or part of a period after [F67goods were taken control of under CRAR] ,
shall be held for the bankrupt as apart of his estate.
[F68(3)Subsection (3A) applies where—
(a)any person (whether or not a landlord or person entitled to rent) has distrained upon the goods or effects of an individual who is [F69made] bankrupt before the end of the period of 3 months beginning with the distraint, or
(b)Her Majesty's Revenue and Customs has been paid any amount from an account of an individual under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by deduction from accounts) and the individual is adjudged bankrupt before the end of the period of 3 months beginning with the payment.
(3A)Where this subsection applies—
(a)in a case within subsection (3)(a), the goods or effects, or the proceeds of their sale, and
(b)in a case within subsection (3)(b), the amount in question,
is charged for the benefit of the bankrupt's estate with the preferential debts of the bankrupt to the extent that the bankrupt's estate is for the time being insufficient for meeting them.]
(4)Where by virtue of any charge under subsection [F70(3A)] any person surrenders any goods or effects to the trustee of a bankrupt’s estate or makes a payment to such a trustee, that person ranks, in respect of the amount of the proceeds of the sale of those goods or effects by the trustee or, as the case may be, the amount of the payment, as a preferential creditor of the bankrupt, except as against so much of the bankrupt’s estate as is available for the payment of preferential creditors by virtue of the surrender or payment.
(5)[F71CRAR is not exercisable at any time after the discharge of a bankrupt against] any goods or effects comprised in the bankrupt’s estate.
F73(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8)[F74Subject to sections 252(2)(b) and 254(1) above] nothing in this Group of Parts affects any right to distrain otherwise than for rent; and any such right is at any time exerciseable without restriction against property comprised in a bankrupt’s estate, even if that right is expressed by any enactment to be exerciseable in like manner as a right to distrain for rent.
(9)Any right to distrain against property comprised in a bankrupt’s estate is exerciseable notwithstanding that the propety has vested in the trustee.
(10)The provisions of this section are without prejudice to a landlord’s right in a bankruptcy to prove for any bankruptcy debt in respect of rent.
F75(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F61Words in s. 347(1) substituted (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(2) (with s. 89); S.I. 2014/768, art. 2(1)(b)
F62Words in s. 347(1) inserted (1.1.2003) by 2000 c. 39, s. 3, Sch. 3 para. 14(a); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
F63Words in s. 347(2) substituted (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(3)(a) (with s. 89); S.I. 2014/768, art. 2(1)(b)
F64Words in s. 347(2) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 40(2)(a); S.I. 2016/191, art. 2 (with art. 3)
F65Words in s. 347(2) inserted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 40(2)(b); S.I. 2016/191, art. 2 (with art. 3)
F66Word in s. 347(2) substituted (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(3)(b) (with s. 89); S.I. 2014/768, art. 2(1)(b)
F67Words in s. 347(2)(c) substituted (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(3)(c) (with s. 89); S.I. 2014/768, art. 2(1)(b)
F68S. 347(3)(3A) substituted for s. 347(3) (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 33(1)(a)
F69Word in s. 347(3) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 40(3); S.I. 2016/191, art. 2 (with art. 3)
F70Word in s. 347(4) substituted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 8 para. 33(1)(b)
F71Words in s. 347(5) substituted (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(4) (with s. 89); S.I. 2014/768, art. 2(1)(b)
F72S. 347(6) repealed (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(5), Sch. 23 Pt. 4 (with s. 89); S.I. 2014/768, art. 2(1)(b)
F73S. 347(7) repealed (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(5), Sch. 23 Pt. 4 (with s. 89); S.I. 2014/768, art. 2(1)(b)
F74Words in s. 347(8) inserted (1.1.2003) by 2000 c. 39, s. 3, Sch. 3 para. 14(b); S.I. 2002/2711, art. 2 (subject to transitional provisions in arts. 3-5)
F75S. 347(11) repealed (6.4.2014) by Tribunals, Courts and Enforcement Act 2007 (c. 15), s. 148, Sch. 14 para. 44(6), Sch. 23 Pt. 4 (with s. 89); S.I. 2014/768, art. 2(1)(b)
348 Apprenticeships, etc.E+W
(a)a bankruptcy order is made in respect of an individual to whom another individual was an apprentice or articled clerk at the time when the [F76application for the order was made or (as the case may be) the petition for the order] was presented, and
(b)the bankrupt or the apprentice or clerk gives notice to the trustee terminating the apprenticeship or articles.
(2)Subject to subsection (6) below, the indenture of apprenticeship or, as the case may be, the articles of agreement shall be discharged with effect from the commencement of the bankruptcy.
(3)If any money has been paid by or on behalf of the apprentice or clerk to the bankrupt as a fee, the trustee may, on an application made by or on behalf of the apprentice or clerk, pay such sum to the apprentice or clerk as to the trustee thinks reasonable, having regard to—
(a)the amount of the fee,
(b)the proportion of the period in respect of which the fee was paid that has been served by the apprentice or clerk before the commencement of the bankruptcy, and
(c)the other circumstances of the case.
(4)The power of the trustee to make a payment under subsection (3) has priority over his obligation to distribute the bankrupt’s estate.
(5)Instead of making a payment under subsection (3), the trustee may, if it appears to him expedient to do so on an application made by or on behalf of the apprentice or clerk, transfer the indenture or articles to a person other than the bankrupt.
(6)Where a transfer is made under subsection (5), subsection (2) has effect only as between the apprentice or clerk and the bankrupt.
F76Words in s. 348(1)(a) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 41; S.I. 2016/191, art. 2 (with art. 3)
349 Unenforceability of liens on books, etc.E+W
(1)Subject as follows, a lien or other right to retain possession of any of the books, papers or other records of a bankrupt is unenforceable to the extent that its enforcement would deny possession of any books, papers or other records to the official receiver or the trustee of the bankrupt’s estate.
(2)Subsection (1) does not apply to a lien on documents which give a title to property and are held as such.
C19Ss. 349, 350(1)(2)(4)–(6) applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
[F77349A Arbitration agreements to which bankrupt is party.E+W
“the court” means the court which has jurisdiction in the bankruptcy proceedings.]
F77S. 349A inserted (31.1.1997) by 1996 c. 23, s. 107(1), Sch. 3 para. 46 (with s. 81(2)); S.I. 1996/3146, art. 2, Sch. 1 (with transitional provisions in Sch. 2)