Does a Bankrupt have standing to ask his/her Trustee in Bankruptcy to decide whether they are going to issue a Notice of Disclaimer?

August 21, 2017

When an individual is adjudicated Bankrupt, pursuant to Section 306 of the Insolvency Act 1986 (“the Act”) and its NI equivalent, Article 279 of the Insolvency (Northern Ireland) Order 1989 (“the Order”), all of the bankrupt’s property automatically vests in his/her Trustee in Bankruptcy (“Trustee”). Property is defined in the legislation and includes a chose … Continue reading Does a Bankrupt have standing to ask his/her Trustee in Bankruptcy to decide whether they are going to issue a Notice of Disclaimer?

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Legal Professional Privilege and the ability of a Trustee in Bankruptcy to use privileged documents to challenge a transaction as a Transaction Defrauding Creditors

August 10, 2017

On 17th July 2017 the High Court in England and Wales handed down judgment in the case of Leeds and another v Lemos and others [2017] EWHC 1825 (Ch). Mr Leeds and Mr Hellard were appointed as joint Trustees (“the Trustees”) in Bankruptcy in respect of the Bankruptcy estate of Mr Lemos (“the Bankrupt”) in … Continue reading Legal Professional Privilege and the ability of a Trustee in Bankruptcy to use privileged documents to challenge a transaction as a Transaction Defrauding Creditors

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Are you winding me up?

July 17, 2017

Secretary of State for Business, Innovation and Skills v Diffraction Diamonds DMCC and IGL Labs UK Ltd [2017] EWHC 1368 (Ch) In this case, the Secretary of State petitioned the Court to wind up two companies on public interest grounds. Both companies; Diffraction Diamonds DMCC (“Diffraction”) and IGL Labs UK Limited (“IGL”), were involved in … Continue reading Are you winding me up?

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NI COMI Case Law and its relationship with Brexit

March 31, 2017

On 7th February 2017, Horner J gave judgement in the case of Antonio Macari (“the Debtor”) [2017] NICh 5. In this case, the Debtor appealed Master Kelly’s decision to dismiss his Debtor’s Petition. The Debtor argued that his Centre of Main Interests (“COMI”) was in fact now in Northern Ireland and no longer in the … Continue reading NI COMI Case Law and its relationship with Brexit

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Bankruptcy Court refuses to look behind Judgment upon presentation of Bankruptcy Petition

February 28, 2017

In the recent decision of Master Kelly in The Governor and Company of the Bank of Ireland –v- Gerard Noel McFeely and Conal Derek McFeely, the Master refused applications issued by Gerard McFeely and Conal McFeely (“the Debtors”) asking the Court to look behind a Judgment and dismiss Bankruptcy Petitions issued by The Governor & … Continue reading Bankruptcy Court refuses to look behind Judgment upon presentation of Bankruptcy Petition

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Recent Changes to the Northern Ireland Insolvency Legislation

December 16, 2016

On 30th November 2016 a number of important amendments to the principal Insolvency Legislation in Northern Ireland, the Insolvency (Northern Ireland) Order 1989 (“the Order”) came into effect. 1. The Insolvency (Northern Ireland) Order 1989 (Amendment) Order (Northern Ireland) 2016 This statutory rule increases the level of debt that must be owing to a Creditor … Continue reading Recent Changes to the Northern Ireland Insolvency Legislation

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Statutory Demands – The Benefits & Disadvantages

October 14, 2016

Statutory Demands are a popular process by which a creditor threatens a debtor with Bankruptcy, or Winding Up. Statutory Demands are on a prescribed form and once served give the debtor 21 days within which to pay the sum claimed. The alternative to serving a Statutory Demand would be to serve a letter of claim … Continue reading Statutory Demands – The Benefits & Disadvantages

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Centre of Main Interests “COMI”- NI Case Law Update

September 21, 2016

Pursuant to EC Regulation 1346/2000 a Court has jurisdiction to grant a Bankruptcy Order on foot of a Debtor’s petition if it is satisfied that the jurisdiction represents the Debtor’s Centre of Main Interests (“COMI”). A Debtor’s COMI will be determined at the date of presentation of the petition. The Bankruptcy regime in Northern Ireland … Continue reading Centre of Main Interests “COMI”- NI Case Law Update

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BREXIT and the impact on Northern Ireland Cross Border Insolvency

September 20, 2016

The 23rd June 2016 was not only a historic day in terms of European and UK politics- it also heralded the beginning of a potential momentous change to daily insolvency practice within Northern Ireland (and indeed the UK as a whole) when dealing with cross border insolvency matters. The primary governing insolvency legislation in NI … Continue reading BREXIT and the impact on Northern Ireland Cross Border Insolvency

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Transactions at an Undervalue and Preference Payments-Case Law Update

August 19, 2016

In the recent case of the Official Receiver for Northern Ireland –v- Patrick Doyle [2016] NI Master 7 Master Kelly the Court was asked to determine whether the transfer of lands from the Bankrupt to the Respondent for natural love and affection was void on the basis that the transfer constituted a Transaction at an … Continue reading Transactions at an Undervalue and Preference Payments-Case Law Update

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Bankruptcy Restriction Orders

June 14, 2016

Pursuant to the Insolvency (Northern Ireland) Order 1989, the Official Receiver and the Department of Enterprise, Trade and Investment (DETI) has power to apply to the Court for a Bankruptcy Restrictions Order (“BRO”). A BRO is usually granted by the Court following an application by the Official Receiver to impose restrictions on a bankrupt, for … Continue reading Bankruptcy Restriction Orders

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Changes to NI Insolvency Legislation: The Insolvency (Amendment) Act (Northern Ireland) 2016

May 31, 2016

On 1st April 2016, a significant number of changes came in to effect arising from the commencement of the Insolvency (Amendment) Act (Northern Ireland) 2016 (“the Act”).  Many of these changes bring Northern Ireland in line with England, Wales and Scotland. We have summarised the most notable changes that have been made to the Insolvency … Continue reading Changes to NI Insolvency Legislation: The Insolvency (Amendment) Act (Northern Ireland) 2016

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Does a Receiver owe a Duty of Care to the Mortgagor once declared Bankrupt?

April 8, 2016

In the case of Purewal v Countrywide Residential Letting Ltd and other [2015] EWCA Civ 1122 the Court considered if Receivers appointed over the property of an individual mortgagor owe a duty of care to the mortgagor once he has been declared bankrupt. Background Receivers were appointed by Bank of Scotland in March 2009 arising … Continue reading Does a Receiver owe a Duty of Care to the Mortgagor once declared Bankrupt?

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Can a Creditor challenge the Administrators’ fees and conduct?

In the recent case of BW Estates Ltd [2015] EWHC 215(Ch), a Creditor sought to challenge the Administrators’ fees and conduct. Background BW Estates Limited (“the Company”) was in the business of property investment and owned five properties. The creditor, who brought the application to challenge the Administrator’s conduct and fees, obtained a freezing injunction … Continue reading Can a Creditor challenge the Administrators’ fees and conduct?

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The Small Business, Enterprise and Employment Act 2015

October 2, 2015

The Small Business, Enterprise and Employment Act 2015 received Royal Assent on 26 March 2015 (“the 2015 Act”). The 2015 Act makes radical changes to the current insolvency regime in place in England and Wales under the Insolvency Act 1986 (“the 1986 Act”). At the outset it should be noted that whilst some of the … Continue reading The Small Business, Enterprise and Employment Act 2015

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Pensions and Bankruptcy – An Update

September 24, 2015

Back in August 2013 we published an Article “Pensions and Bankruptcy-Extended Powers for a Trustee in Bankruptcy?” This article considered the implications of bankruptcy and pensions following the leading cases at the time, namely Raithatha v Williamson [2012] EWHC 909 (Ch) and Blight & Others v Brewster [2012] EWHC 165 (Ch). Since then, there have … Continue reading Pensions and Bankruptcy – An Update

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Recent Insolvency trends in Northern Ireland, England and Wales

August 3, 2015

The Insolvency Service recently published their quarterly statistics for Q2 2015 April to June. The statistics focus mainly on the trends in England and Wales but also provide comparable statistics for Northern Ireland and Scotland. The results are presented for both company and individual insolvencies. Company Insolvencies According to the Q2 results published for E&W, company insolvencies … Continue reading Recent Insolvency trends in Northern Ireland, England and Wales

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The Official Receiver for Northern Ireland v Julie Anne Urey

December 9, 2014

In the recent case of Official Receiver v Urey¹, the Official Receiver applied for inter alia sale in lieu of partition of a property, with the net proceeds of sale being divided in equal shares between the Respondent and her former husband (“the Bankrupt”) or in such other shares as the Court should see fit. However, the Respondent … Continue reading The Official Receiver for Northern Ireland v Julie Anne Urey

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Insolvency (Northern Ireland) Order 1989 Art 256A – the “use it or lose it” provisions

November 11, 2014

A key part of the role of a trustee in bankruptcy is to realise the value of the bankrupt’s assets and use the proceeds to pay the money owed to the bankrupt’s creditors. In the case of personal insolvency, this often involves selling the property in which the bankrupt resides, which is a valuable asset. … Continue reading Insolvency (Northern Ireland) Order 1989 Art 256A – the “use it or lose it” provisions

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A GAME CHANGER? UPDATE – The Supreme Court refuses Game’s application to appeal the Court of Appeal’s February 2014 Judgment

November 3, 2014

In February this year we reported on the Court of Appeal’s judgement in the case of Pillar Denton Limited and others v Game Retail Limited and others [2014] EWCA Civ 180. In this case the Court of Appeal considered the issue of treatment of rent payable by a corporate tenant that enters administration, and whether such rent … Continue reading A GAME CHANGER? UPDATE – The Supreme Court refuses Game’s application to appeal the Court of Appeal’s February 2014 Judgment

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Providing assistance to companies in distress- the Danish approach

September 25, 2014

Caitriona Morgan, Associate solicitor recently attended an event in the MAC, “Spotlight on SMEs”. The event was jointly hosted by the Federation of Small Businesses and the University of Ulster Business School. The key note speaker was Mr Søren Boutrup from the Danish Ministry of Business and Growth. Mr Boutrup provided a fascinating insight into how the … Continue reading Providing assistance to companies in distress- the Danish approach

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Retrospective Consent of Administrator

May 9, 2014

The recent case of Cyril Fulton And Ernest Fulton v. AIB Group (UK) Plc considered whether an Administrator has power to provide retrospective consent to commencement of legal proceedings against a Partnership. This was the first time this matter was given considered the court, by Mr Justice Horner was the appointed Judge. Consideration was given to the case … Continue reading Retrospective Consent of Administrator

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A 50/50 Property split? Beneficial Interest vs Legal Title

In the recent case of The Official Receiver for Northern Ireland v Stephen Snoddon and Monica Frances McShane [NIMaster 5] the Court considered whether the bankrupt’s former partner held the sole beneficial interest in the subject Property, despite the fact that the Property was held in joint names. Mr Snoddon (“the Bankrupt”) was adjudicated Bankrupt on 4 April … Continue reading A 50/50 Property split? Beneficial Interest vs Legal Title

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A “GAME” CHANGER? THE COURT OF APPEAL RULES ON THE TREATMENT OF RENT AS AN EXPENSE IN ADMINISTRATION

February 26, 2014

The Court of Appeal has recently handed down its judgment in the case of Pillar Denton Ltd & Ors v Jervis & Ors 2014 [EWCA] Civ 180, also known as the “Game case”. In March 2012 the Game group of companies was placed into administration. One of the companies in the group was a tenant of a … Continue reading A “GAME” CHANGER? THE COURT OF APPEAL RULES ON THE TREATMENT OF RENT AS AN EXPENSE IN ADMINISTRATION

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THE MYTH OF THE £1 TRANSFER-TRANSACTIONS AT AN UNDERVALUE

August 28, 2013

When individuals are faced with the prospect of Bankruptcy, they are understandably concerned about losing their business, their assets and perhaps most importantly, their family home. We often get asked the following question “What is the best way to protect all of these assets-should I transfer them to a family member for £1 before I am made … Continue reading THE MYTH OF THE £1 TRANSFER-TRANSACTIONS AT AN UNDERVALUE

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PENSIONS AND BANKRUPTCY-EXTENDED POWERS FOR A TRUSTEE IN BANKRUPTCY?

Historically, pensions could be claimed by a Trustee in Bankruptcy (TIB) for the benefit of creditors, subject to certain exceptions. The Welfare Reform and Pensions Act 1999 and the Welfare Reform and Pensions (Northern Ireland) Order 1989 (both referred to as “WRPA)” brought in welcome changes for bankrupts regarding the rules for pensions in bankruptcy. The WRPA provided … Continue reading PENSIONS AND BANKRUPTCY-EXTENDED POWERS FOR A TRUSTEE IN BANKRUPTCY?

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