In force2020 Revised Edition

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Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 17 · Administration in Bankruptcy

390. Payment of interest exceeding what is allowed under section 356 out of surplus

(1)

Where any amount remains after the debts and expenses of the bankruptcy have been paid (called in this section the surplus), the interest mentioned in subsection (2) must be paid before the bankrupt is entitled under section 391 to any of the surplus.

(2)

The surplus is to be paid towards interest on each debt proved in bankruptcy, from (and including) the day after the date of the bankruptcy order to (and including) the date that debt was paid, calculated at such rate of interest as the creditor may be entitled under an agreement or, in the absence of any such agreement, at such rate as may be prescribed.

(3)

For the purposes of subsection (2) —

(a)

interest on preferential debts ranks equally with interest on other debts;

(b)

interest of the same class ranks equally between themselves; and

(c)

if the surplus is insufficient to pay all interest of the same class, the interest in that class is to abate in equal proportions between themselves.