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As such, Bankruptcy debts are ‘provable’ and therefore will either be paid (by the creditors receiving some pence in the pound owed to them) after the Bankruptcy Order, or wiped out on discharge of the Bankruptcy.
[See ‘Bankruptcy’, ‘Insolvency Act’ and ‘Bankruptcy Order’.]
The Registrar at the Land Registry must, as soon as practicable after the registration of a Bankruptcy petition at the Land Charges Department, enter a Bankruptcy Notice against the title of a sole proprietor of any registered property or charge which appears to be affected.
The effect of this is that anyone wanting to deal with the land belonging to a Bankrupt will see that a Trustee in Bankruptcy has been appointed over the insolvent estate, and no-one will be able to deal with the land without permission of that Trustee. This is because all of the Bankrupt’s property vests in their Trustee in Bankruptcy when a Bankruptcy Order has been made.
Unless cancelled by the Registrar, a Bankruptcy Notice remains in force until a Bankruptcy Restriction is registered, or the Trustee in Bankruptcy, or a purchaser from the Trustee is registered.
[See ‘Land Registry’, ‘Bankrupt’, ‘Trustee in Bankruptcy’, ‘Vests’, ‘Bankruptcy Restriction’ and ‘Bankruptcy Order’.
On the making of a Bankruptcy Order a Bankruptcy Restriction will be entered against the registered property (land/home) of the Bankrupt.
The effect of a Bankruptcy Restriction is that no disposition (other than the registration of the Trustee in Bankruptcy) affecting the property or charge in respect of which the restriction has been entered can be completed by registration until the restriction is cancelled as to the whole or part of the property or charge.
The restriction may additionally have the effect of precluding the entry of notices to protect certain third party interests.
[See ‘Bankruptcy Order’, ‘Bankruptcy Notice’ and ‘Trustee in Bankruptcy’.]
