Bankruptcy Estate

We acted for an insolvency practitioner who had been appointed as the trustee in bankruptcy of a bankruptcy estate. Further to Section 283A of the Insolvency Act 1986 (the “Act”) the client’s interest in a property needed to be ‘realised’ as defined in the Act by 15 August 2015. We received instructions to ‘realise’ that interest by issuing proceedings for possession and sale on 13 August 2014 in order to prevent the client’s interest in the property automatically reverting to the bankrupt.

An application for possession and sale together with a supporting witness statement was issued the next day and therefore within the deadline. This involved not only preparing the documents and arranging for the same to be approved and signed by the client but also instructing agents to attend the relevant county court on behalf of our client in order to ensure that the application was issued in time.

The application was heard and an order in favour of our client at the first hearing and a settlement was reached with the bankrupt further to which, our client received the value of their interest in the property within two months.