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If encountering this situation, the .rst thing to do is note the dates. Has a Bankruptcy Order in the second Bankruptcy been made before the discharge of the .rst Bankruptcy? Where a subsequent Bankruptcy Order is made against the same individual any after-acquired property or money paid, and not distributed, under an Income Payments Order will become part of the second Bankruptcy.
The Insolvency Rules state that once the Trustee in Bankruptcy (Trustee) in the first Bankruptcy has received notice of the later Bankruptcy (for example, the presentation of a petition, or making of an application) any disposition of property after this date will be void, unless made with the consent of court.
Effectively, the existing Trustee must protect these assets for the second Bankruptcy. However, these assets are subject to a charge in favour of the earlier Trustee for any expenses of the .rst Bankruptcy for dealing with those assets.
This means, the expenses of the Trustee must be paid first from any distributions to creditors in the second Bankruptcy.
Any after-acquired property and money already received and not distributed from an Income Payments Order (IPO) will belong to the second Bankruptcy. All afteracquired property and income to be paid after the commencement of the second Bankruptcy will belong to the second Bankruptcy.
All other assets that were vested in the .rst Bankruptcy will remain in the .rst Bankruptcy. Essentially this means that the only assets in the second Bankruptcy will be the remaining payments under the IPO, any after-acquired property or any assets obtained since the commencement of the .rst Bankruptcy.
Warning: it may not be the most lucrative case to take.
[See ‘Bankruptcy’, ‘Bankruptcy Order’, ‘Trustee in Bankruptcy’, ‘Income Payments Order’, ‘IPO’ and ‘Discharge’.]
In the United Kingdom, a secretary of state is a senior minister, normally in charge of a Government department.
An example used a lot in insolvency and restructuring is the Secretary of State of the Department of Business, Energy and Industrial Strategy.
[See ‘Department of Business, Energy and Industrial Strategy’.]
