When someone is made bankrupt, all property owned by them, at the date of bankruptcy, forms part of the bankruptcy estate. Property not only includes physical assets, such as goods, land and money, but also intangible assets, such as a cash balance with a bank, debts, benefits under contracts, legacies and causes of action. These assets are known as ‘things in action’. The bankruptcy estate vests in a trustee in bankruptcy upon appointment.
The Insolvency Rules 2016 ("IR 2016") are due to come into force in England and Wales on 6 April 2017. Its purpose is to modernise and streamline the insolvency process in England and Wales in order to reduce the costs and potentially increase returns to creditors. IR 2016 incorporates the changes to insolvency law and practice brought about by the Deregulation Act 2015 and the Small Business, Enterprise and Employment Act 2015.
This article highlights the principal areas of change and their practical implications.
Background
In the UK case of CFL Finance Limited v Rubin and Ors, a creditor had sought to make an individual bankrupt. A creditors' meeting was held. At the meeting, a proposal for an Individual Voluntary Arrangement was approved by the creditor that held the largest portion of debt (and therefore 90.43% of the vote). The other two creditors voted against the proposal.
Original news
Mikki v Duncan [2016] EWCA Civ 1312, [2017] All ER (D) 157 (Feb)
A prominent High Court case involving TV presenter Trinny Woodall and her late ex-husband’s creditors has provided a useful insight into the handling of debts following a divorce.
Ms Woodall married Johnny Elichaoff in 1999 and after a ten year marriage, the couple divorced in 2009.
During the divorce settlement it was agreed that Mr Elichaoff would pay Ms Woodall and their daughter £24,000 a year and repay a sum of £1.4 million to her.
However, just nine days before the divorce was finalised Mr Elichaoff was made bankrupt and the repayment was later declared void.
January 2017
Practice Group: Restructuring & Insolvency
Banking & Asset Finance
Modernised UK Insolvency Rules Arriving April 2017
By Jonathan Lawrence
The updated UK Insolvency Rules 2016 will come into force on 6 April 2017. The new rules have four aims:
o to reflect modern business practice and increase efficiency; o to restructure and modernise the 1986 Rules; o to implement policy changes; and o to consolidate the 1986 Rules and subsequent amendments.
Background
In the case of Horton v Henry, the Court of Appeal has recently upheld the High Court’s decision that a Trustee in Bankruptcy cannot compel a bankrupt to draw down his pension rights where the bankrupt has not elected to do so.
The facts
In May 2015, I wrote an article about the conflicting lower court decisions in Raithatha –v- Williamson and Horton –v- Henry, concerning undrawn pension entitlements and income payment orders. The Court of Appeal has now finally handed down its long expected Judgment.
31/10/2016 Pensions Update October 2016 http://bakerxchange.com/rv/ff002b980788f142ab3974e23146b6f2e393d02b 1/4 Pensions Update October 2016 In this issue Court of Appeal clarifies treatment of pensions on bankruptcy PPF publishes consultation on 2017/2018 levy DWP consults on valuing pensions for the advice requirement Regulator declares rule change void Next steps in leaving the European Union Committee publishes new evidence on regulation of pension schemes Regulator launches blog Government cancels plans t
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Uncrystallised pension pot remains protected following bankruptcy