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Civil Way

Ancillary Relief

Christmas ruined for trustees in Bankruptsy

 

It’s over. The threat of a post-ancillary relief order attack by a trustee in bankruptcy against a respectable property adjustment order is no more. And that is whether the order was made by consent or after a contested hearing. The district judge in Haines v Hill and another [2007] EWCA Civ 1284, [2007] All ER (D) 56 (Dec) who was reversed by a circuit judge has now had his judgment restored by the Court of Appeal.

 

From divorce court to

Carey Street

The husband and wife had bought a farm after which they separated and then divorced and the wife applied for ancillary relief. The husband was ordered to transfer his interest in the farm to the wife. The husband was made bankrupt on his own petition just one month after the order had become effective. The farm was later sold for a sum which provided £120,000 in respect of the husband’s share. The husband’s trustee in bankruptcy went after that interest on the basis that the transfer of his interest

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