Section 226 of Insolvency Act CAP 53: Secured creditor’s options in relation to property that is subject to a charge

(1) If property of a bankrupt is subject to a security, the bankruptcy trustee may make an application to the Court for an order under subsection (2). (2) On the hearing of an application made under...

(1) A creditor who realises property that is subject to a charge may prove as an unsecured creditor for any balance due after deducting the net amount realised. (2) However, subsection (1) does not...

This section applies if a creditor who holds a charge or security right over a bankrupt's property has the property valued and seeks to prove as an unsecured creditor for the balance due after...

(1) A person who— (a) makes, or authorises the making of, a claim under section 229 (1) knowing it to be false or misleading; or (b) omits, or authorises the omission of, any matter from a claim...

(1) If a creditor who holds a charge or security right over property of a bankrupt values the property and seeks to prove for the balance due, the bankruptcy trustee shall— (a) accept the valuation...

(1) This section applies to a creditor who has surrendered a charge under option 3 in section 226(2) or is taken to have surrendered the charge under section 226(4). (2) The creditor may, with the...

If a creditor's claim is subject to a contingency or is for damages, or if, for some other reason, the amount of the claim is uncertain, the bankruptcy trustee may estimate the amount of the claim.

(1) If the bankruptcy trustee— (a) chooses not to estimate the amount of a creditor's claim in accordance with section 233; or (b) has estimated the amount of the claim but the creditor is...

(1) A creditor's claim that would, but for the bankruptcy, be payable six months or more after the commencement of the bankruptcy is taken to be a claim for the present value of the debt. (2) The...

If there have been mutual credits, mutual debts or other mutual dealings between a bankrupt and another person, the bankruptcy trustee shall— (a) take an account of what is due from the one party to...

A creditor may claim interest up to the date on which the bankruptcy commences— (a) in the case of contract debt interest, at the rate specified in the contract that provides for interest on the...

(1) The bankruptcy trustee shall pay interest on all allowed creditors' claims at the prescribed rate if surplus assets remain after the bankruptcy trustee has paid the claims. (2) The bankruptcy...

(1) If there is a surplus after the bankruptcy trustee has paid post-bankruptcy interest as provided by section 238, the bankruptcy trustee shall pay additional interest on allowed proofs for a...

For the purposes of sections 238 and 239, the prescribed rate of interest is the rate for the time being prescribed by the insolvency regulations for the purposes of those sections.

A creditor shall deduct from the creditor's claim any trade discount that the creditor would have given a debtor if the debtor had not become bankrupt.

If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor— (a) if the security is wholly...

A person who obtained an order for costs against the bankrupt before the commencement of the bankruptcy may prove for the amount of those costs even if that amount is not fixed until after that...

(1) If a bankrupt is, at the commencement of the bankruptcy, a shareholder of a company (not being a company that is in liquidation), the company may prove for— (a) the amount of unpaid calls on the...

If, in relation to a bankruptcy— (a) a person is, at the commencement of the bankruptcy, a guarantor of, or is otherwise liable for a debt of, the bankrupt; and (b) the person discharges the debt or...

In this Division, "preferential claim" means a claim in respect of a debt listed in paragraphs 2, 3 or 4 of the Second Schedule.

(1) For the purpose of this Act, a bankrupt's preferential debts are those specified in paragraphs 2 to 4 of the Second Schedule and are payable as provided by that Schedule in priority to the...

(1) This section applies to bankruptcy debts owed in respect of credit provided by a person who was the bankrupt's spouse at the commencement of the bankruptcy and so applies even if the person was...

If a payment has been made to a person on account of a preferential creditor out of money advanced by another person for that purpose, the other person has, in the bankruptcy, the same right of...

(1) If a landlord or other person has distrained on goods or effects of the bankrupt during the thirty day period before the bankruptcy commenced, the preferential claims are a first charge on the...

If a bankrupt is a partner of a firm, any creditor to whom the bankrupt is indebted jointly with the other partners of the firm is not entitled to receive money obtained from the realisation of the...

(1) On realising the bankrupt's estate or so much of it as can be realised without needlessly protracting the bankruptcy trusteeship, the bankruptcy trustee shall give notice either— (a) of an...

(1) Subject to this section, if— (a) it appears to the bankruptcy trustee that the administration of the bankrupt's estate in accordance with this Division is for practical purposes complete;...

(1) A bankrupt is automatically discharged from bankruptcy three years after the bankrupt lodged a statement of the bankrupt's financial position in accordance with section 50, but may apply to be...

The automatic discharge of the bankrupt has the same effect as if the Court made an order for the bankrupt's discharge.

(1) The bankruptcy trustee, the Official Receiver (if not the bankruptcy trustee) or, with the approval of the Court, a creditor may object to a bankrupt's automatic discharge. (2) An objection has...

(1) An objection to the automatic discharge of the bankrupt may be withdrawn in the manner prescribed by the insolvency regulations. (2) A bankrupt is automatically discharged on the withdrawal of...

(1) A bankrupt may at any time apply to the Court for an order of discharge from bankruptcy. (2) However, if the Court has previously refused an application by the bankrupt for a discharge, and has...

(1) The bankruptcy trustee shall summon the bankrupt to be publicly examined before the Court concerning the bankrupt's discharge if— (a) the bankruptcy trustee or a creditor has objected to the...

(1) The bankruptcy trustee shall prepare a report and lodge it with the Court when— (a) the bankrupt has applied under section 258 for a discharge; or (b) the bankruptcy trustee has summoned the...

(1) A creditor shall give to the bankruptcy trustee and the bankrupt a notice that complies with subsection (2) if the creditor intends to oppose the bankrupt's discharge on a ground that is not...

(1) On hearing an application made under section 258, or the holding of a public examination of the bankrupt under section 259, the Court may— (a) immediately discharge the bankrupt; (b) discharge...

(1) On making an order of discharge or at any earlier time, the Court may prohibit the bankrupt from doing after discharge all or any of the following without the Court's approval— (a) entering into,...

(1) The bankruptcy trustee or a creditor of the bankrupt may make an application to the Court for an order under subsection (2). (2) On the hearing of an application made under subsection (1), the...

(1) The quashing of a discharge does not affect the rights or remedies that a person other than the bankrupt would have had if the discharge had not been quashed. (2) It property acquired by the...

(1) A bankrupt may apply to the Court for an absolute discharge even though the bankrupt is not able to comply with any or all of the conditions of the bankrupt's discharge. (2) The Court may...

(1) On being discharged, a bankrupt is released from all debts provable in the bankruptcy except those listed in subsection (2). (2) The debts from which the bankrupt is not released are the...

A discharge of a bankrupt from bankruptcy is conclusive evidence of the bankruptcy and of the validity of the proceedings in course of the bankruptcy.

The discharge of a bankrupt does not release a person who, at the commencement of the bankruptcy, was — (a) a business partner of the bankrupt; (b) a co-trustee with the bankrupt; (c) jointly...

(1) A person who is discharged from bankruptcy shall assist the bankruptcy trustee, as required by the Court or the bankruptcy trustee, in the realisation and distribution of the property of the...

lf the Court refuses to discharge a bankrupt or makes an order discharging the bankrupt but suspends the discharge, the Official Receiver shall record that information in the relevant public register...

(1) The Official Receiver or any other person claiming to have a legitimate interest in the matter may make an application to the Court for an order under subsection (2). (2) On the hearing of an...

(1) The Official Receiver may annul a bankruptcy order on any of the grounds specified in subsection (2), but only if the order was made on a debtor's application. (2) The grounds for annulment by...

(1) On annulment of a bankruptcy order, all property of the bankrupt vested in the Official Receiver on bankruptcy and not sold or otherwise disposed of by the Official Receiver revests in the...

In this Division— "confirming resolution" means a special resolution passed by a bankrupt's creditors in accordance with section 276 confirming a preliminary resolution; "preliminary resolution"...

(1) The creditors of a bankrupt may accept a composition in satisfaction of the debts due to them from the bankrupt by passing a special resolution that contains the terms of the composition. (2) If...