Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 17 · Administration in Bankruptcy
327. Effect of bankruptcy order
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On the making of a bankruptcy order —
bankruptcy order
“bankruptcy order” means an order adjudging a debtor bankrupt;
the property of the bankrupt —
vests in the Official Assignee without any further conveyance, assignment or transfer; and
becomes divisible among the bankrupt’s creditors;
the Official Assignee is constituted the receiver of the bankrupt’s property; and
unless otherwise provided by Parts 3 and 13 to 22 —
no creditor to whom the bankrupt is indebted in respect of any debt provable in bankruptcy has any remedy against the person or property of the bankrupt in respect of that debt; and
no action or proceedings may be proceeded with or commenced against the bankrupt in respect of that debt,except by the permission of the Court and in accordance with such terms as the Court may impose.
Where a bankruptcy order is made against a firm, the order operates as if it were a bankruptcy order made against each of the persons who, at the time of the order, is a partner in the firm.
firm
“firm” means an unincorporated body of individuals carrying on business in partnership with a view to profit;
This section does not affect the right of any secured creditor to realise or otherwise deal with the secured creditor’s security in the same manner as the secured creditor would have been entitled to realise or deal with it if this section had not been enacted.
secured creditor
“secured creditor”, in relation to a debtor, means a person holding a mortgage, pledge, charge, lien or other security on or against the property of the debtor or any part of such property as security for a debt due to the person from the debtor;
Despite subsection (3) and section 356, a secured creditor is not entitled to any interest in respect of the secured creditor’s debt after the making of a bankruptcy order unless the secured creditor —
debt
“debt” means any debt, or any liability to pay money, that is unsecured, present, certain, and of an amount that is fixed or liquidated;
notifies the Official Assignee within 60 days after the date of the bankruptcy order of the secured creditor’s intention to claim such interest; and
realises the secured creditor’s security within —
12 months after the date of the bankruptcy order (called in this section the realisation period); or
such further period as the Official Assignee may determine on the application of the secured creditor made at least 30 days (or such shorter period as the Official Assignee may allow) before the expiry of the realisation period.