What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take?

Published by a ³ÉÈËÓ°Òô Restructuring & Insolvency expert
Practice notes

What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take?

Published by a ³ÉÈËÓ°Òô Restructuring & Insolvency expert

Practice notes
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Definition of property and some general principles

Property is defined very widely in section 436 of the Insolvency Act 1986 (IA 1986), and includes 'money, goods, things in action, land and every description of property wherever situated and also obligations and every description of interest, whether present or future or vested or contingent, arising out of, or incidental to, property'. This statutory definition is broad enough to include property, both tangible and intangible and wherever situated (on foreign property—see Sanders v Donovan); with real estate, the usual rules of international law provide that the Trustee in bankruptcy (Trustee) will require an order from the court where that property is situated to enforce their rights.

In general terms, all property (as so broadly defined) belonging to or vested in the Bankrupt at the commencement of the bankruptcy forms part of the bankruptcy estate and will vest automatically in the trustee immediately upon their appointment.

There are, however, certain exceptions

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Jurisdiction(s):
United Kingdom
Key definition:
Asset definition
What does Asset mean?

(1) Any item of value; (2) The holdings of a fund, which may include stocks, shares, fixed-interest securities or cash; (3) The main types of investment available: bonds, equities, real estate, commodities etc.

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