Bankruptcy Act 1988

PART III

Administration of Property

Effect of Adjudication on Bankrupt's Property

Vesting of property in Official Assignee.

(1857, ss. 267, 268, 273)

44

44. (1) Where a person is adjudicated bankrupt, then, subject to the provisions of this Act, all property belonging to that person shall on the date of adjudication vest in the Official Assignee for the benefit of the creditors of the bankrupt.

(2) Subject to the provisions of this Act, the title of the Official Assignee to any property which vests in him by virtue of subsection (1) shall not commence at any date earlier than the date of adjudication.

(3) The property to which subsection (1) applies includes—

( a) all powers vested in the bankrupt which he might legally exercise in relation to any property immediately before the date of adjudication;

( b) all property which was the subject of any conveyance or transfer which sections 57, 58 and 59 declare void as against the Official Assignee, subject to the rights of any persons which are preserved F27 [ by those sections; and ]

F28 [ (c) any sum paid to the bankrupt under a periodic payments order, which relates to damages in respect of future loss of earnings. ]

(4) The property to which subsection (1) applies does not include—

( a) property held by the bankrupt in trust for any other person, F29 [ ]

( b) any sum which vests in the Official Assignee under F30 [ section 52 (1) of the Property Services (Regulation) Act 2011 ], or section 30 (i) of the F31 [ Central Bank Act 1971 , and ]

F28 [ (c) any sum paid to the bankrupt under a periodic payments order, other than a sum referred to in subsection (3)(c) . ]

(5) Without prejudice to any existing principle or rule of law or equity, established practice or procedure in relation to damages or compensation recovered or recoverable by a bankrupt for personal injury or loss suffered by him, property which is acquired by or devolves on a bankrupt before the discharge or annulment of the adjudication order (in this Act called “after-acquired property”) shall vest in the Official Assignee if and when he claims it.

F28 [ (6) Subsection (5) shall not apply to any sum paid to a bankrupt under a periodic payments order before the discharge or annulment of the adjudication order, other than any part of such sum which relates to damages in respect of future loss of earnings. ]

Annotations:

Amendments:

F27

Substituted (1.10.2018) by Civil Liability (Amendment) Act 2017 (30/2017), s. 4(b)(i)(I), S.I. No. 377 of 2018.

F28

Inserted (1.10.2018) by Civil Liability (Amendment) Act 2017 (30/2017), s. 4(b)(i)(II), (ii)(III) and (iii), S.I. No. 377 of 2018.

F29

Deleted (1.10.2018) by Civil Liability (Amendment) Act 2017 (30/2017), s. 4(b)(ii)(I), S.I. No. 377 of 2018.

F30

Substituted (6.07.2012) by Property Services (Regulation) Act 2011 (40/2011), s. 101 and sch. 8, S.I. No. 198 of 2012.

F31

Substituted (1.10.2018) by Civil Liability (Amendment) Act 2017 (30/2017), s. 4(b)(ii)(II), S.I. No. 377 of 2018.