header-logo header-logo

20 April 2008
Issue: 7269 / Categories: Case law , Judicial line , In Court
printer mail-detail

Bankrupting out of ancillary relief

During ancillary relief proceedings, the respondent procures a bankruptcy order...

During ancillary relief proceedings, the respondent procures a bankruptcy order on his own petition as a ruse, does the applicant have the ability to apply for an annulment? If not, is there any other action she can take?

The answer is a resounding ‘yes’. The Insolvency Act 1986 section 282(1)(a)  provides that the court may annul a bankruptcy order ‘if it at any time appears to the court that, on grounds existing at the time the order was made, the order ought not to have been made’. The jurisdiction is wide and is expressed in the passive voice, so there is no restriction at all on who may apply. A disgruntled spouse could definitely apply.

There are three reported cases in which the jurisdiction has been exercised. In Woodley v Woodley [1994] 1 WLR 1167 CA the court said that an order procured to defeat a matrimonial claim could be annulled. In F v F [1994] 1 FLR 359 Mr Justice Thorpe (as he then was) did annul. Mr Justice Wilson (as he then was) did the same in Couvaras v Wolf [2002] 2 FLR 107 where the bankruptcy was a sham.

In a county court a district judge could deal with the petition in the matrimonial proceedings which would be an advantage.

The Bankruptcy Court will often transfer the petition to the family judge where this kind of situation arises so that there are not two courts looking at the same thing from two different
angles.

.

Issue: 7269 / Categories: Case law , Judicial line , In Court
printer mail-details

MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
Law firm HFW is offering clients lawyers on call for dawn raids, sanctions issues and other regulatory emergencies
From gender-critical speech to notice periods and incapability dismissals, employment law continues to turn on fine distinctions. In his latest employment law brief for NLJ, Ian Smith of Norwich Law School reviews a cluster of recent decisions, led by Bailey v Stonewall, where the Court of Appeal clarified the limits of third-party liability under the Equality Act
Non-molestation orders are meant to be the frontline defence against domestic abuse, yet their enforcement often falls short. Writing in NLJ this week, Jeni Kavanagh, Jessica Mortimer and Oliver Kavanagh analyse why the criminalisation of breach has failed to deliver consistent protection
Assisted dying remains one of the most fraught fault lines in English law, where compassion and criminal liability sit uncomfortably close. Writing in NLJ this week, Julie Gowland and Barny Croft of Birketts examine how acts motivated by care—booking travel, completing paperwork, or offering emotional support—can still fall within the wide reach of the Suicide Act 1961
back-to-top-scroll