Insolvency Act 1976 (repealed)

Increase of monetary limits relating to bankruptcy and winding up

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Audit of accounts of trustees in bankruptcy and liquidators

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Insolvency Services Account

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Extension of time for complying with bankruptcy notice

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Proof of debts in bankruptcy

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Power to dispense with public examination of debtor

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• (1) The court may, if it thinks fit, make an order dispensing with the public examination of a debtor under section 15 of the Bankruptcy Act 1914; and in determining whether to make an order the court shall have regard to all the circumstances of the case including, in particular—

• (a) whether the debtor has made a full disclosure of his affairs ;

• (b) whether he has been adjudged bankrupt on a previous occasion;

• (c) the number and nature of his debts ;

• (d) whether his bankruptcy would for any reason be a matter of public concern ; and

• (e) such other matters as may be prescribed for the purposes of this subsection by rules made under section 132 of the said Act of 1914.

• (2) No order shall be made under subsection (1) above except on the application of the official receiver but the power of the court under section 108(1) of the said Act of 1914 to review or rescind any such order may be exercised either on the application of the official receiver or on the application of the debtor, a creditor or the trustee.

• (3) The foregoing provisions are without prejudice to subsection (10) of the said section 15 (power to dispense with public examination of debtor suffering from mental or physical disability).

• (4) Where an order is made under this section or the said subsection (10) dispensing with the public examination of the debtor, sections 16(2) and (6), 18(1) and 26(1) of the said Act of 1914 (which provide for certain things to be done before or after the conclusion of the debtor's public examination) shall have effect as if his public examination were concluded on the date on which the order is made.

Automatic discharge of bankrupt

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• (1) Where the court makes an order—

• (a) declaring that a debtor's examination under section 15 of the Bankruptcy Act 1914 has been concluded; or

• (b) dispensing with his examination under that section,

the court may, if it thinks fit, make an order directing that subsection (2) below shall have effect if he is or has been adjudged bankrupt in the proceedings; and in determining whether to make such an order the court shall have regard to all the circumstances of the case, including in particular, any such facts as are stated in section 26(3) of the said Act of 1914 and whether the debtor has committed any offence under that Act or any other offence connected with his bankruptcy.

• (2) Where the court makes an order under subsection (1) above, then, if the debtor is or has been adjudged bankrupt in the proceedings and—

• (a) is not discharged in respect of the adjudication under section 26 of the said Act of 1914 before the fifth anniversary of the date of the adjudication; and

• (b) the adjudication is not annulled before that anniversary under section 21(2) or 29 of that Act,

the same results shall ensue as if the court had on that anniversary granted him an absolute order of discharge in respect of the adjudication under the said section 26.

• (3) Section 108(1) of the said Act of 1914 (power to review, rescind or vary an order) shall not apply to an order under subsection (1) above, but the court may on the application of the official receiver or the trustee rescind the order at any time before the fifth anniversary of the date of the adjudication.

• (4) Where a person has been adjudged bankrupt more than five years before the coming into force of this section and—

• (a) has not been discharged in respect of the adjudication under section 26 of the said Act of 1914 before the relevant date (that is to say, the coming into force of this section or the tenth anniversary of the date of the adjudication, whichever is the later); and

• (b) the adjudication has not been annulled before the relevant date under section 21(2) or 29 of that Act,

the same results shall ensue as if the court had on the relevant date granted him an absolute order of discharge under the said section 26.

• (5) In subsections (2)(a) and (4)(a) above references to discharge are references to discharge by an absolute order of discharge or by the expiration of the period, or satisfaction of any requirement, specified by a suspended or conditional order.

Discharge of bankrupt on application of official receiver

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• (1) This section applies to any adjudication of bankruptcy made after, or within five years before, the coming into force of this section where—

• (a) the bankrupt has not applied under section 26 of the Bankruptcy Act 1914 for an order of discharge in respect of the adjudication ; and

• (b) the adjudication has not been annulled under section 21(2) or 29 of that Act; and

• (c) the court has not made an order under section 7(1) above in relation to the adjudication or any such order has been rescinded ; and

• (d) five years have elapsed since the date of the adjudication.

• (2) Within twelve months after the fifth anniversary of the date of any adjudication to which this section applies, the official receiver shall make an application to the court in respect of the adjudication.

• (3) The court shall appoint a day for the hearing of the application and notice of the appointment shall be published in the prescribed manner and sent fourteen days at least before the day so appointed to the bankrupt.

• (4) On the hearing of the application the court shall take into consideration a report of the official receiver as to the bankrupt's conduct and affairs, including a report as to the bankrupt's conduct during the proceedings under his bankruptcy; and for the purposes of this section that report shall be prima facie evidence of the statements therein contained.

• (5) Except where the court otherwise directs, the application may be heard in the absence of the bankrupt; and the court may hear the trustee and any creditor, receive such other evidence as it thinks fit and, if the bankrupt is present, put questions to him.

• (6) On any application under this section the court may—

• (a) grant or refuse an absolute order of discharge; or

• (b) suspend the discharge for such period as the court thinks proper or until a dividend of not less than 50p in the pound has been paid to the creditors; or

• (c) require the bankrupt as a condition of his discharge to consent to judgment being entered against him by the official receiver or trustee for any balance or part of any balance of the debts provable under the bankruptcy which is not satisfied at the date of the discharge, such balance or part to be paid out of the future earnings or after-acquired property of the bankrupt in such manner and subject to such conditions as the court may direct.

• (7) Execution shall not be issued without the leave of the court on any judgment entered by virtue of subsection (6)(c) above; and leave may be given on proof that the bankrupt has since his discharge acquired property or income available towards payment of his debts.

• (8) If at any time after the expiration of two years from the date of any order made under this section the bankrupt satisfies the court that there is no reasonable probability of his being in a position to comply with the terms of the order, the court may modify the terms of the order, or of any substituted order, in such manner and on such conditions as it thinks fit.

• (9) References to discharge and an order of discharge in sections 26(9) and 28 of the said Act of 1914 (ancillary provisions as to discharge) shall include references to discharge and an order of discharge under this section; and the powers conferred by this section shall be included in those mentioned in section 102(2) of that Act (powers exercisable by registrars).

Disqualification of directors of insolvent companies

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Advisory committee on bankruptcy and winding up rules

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Power to replace administration order by receiving order

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Administration order rules

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Other provisions about administration orders

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Short title and supplementary provisions

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SCHEDULE 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART I — Increases

PART II — Transitional Provisions

1

No increase in any sum specified in—

• (a) section 12 or 175 of the Bankruptcy (Scotland) Act 1913 ;

• (b) section 4(1)(a) of the Bankruptcy Act 1914 ;

• (c) section 223(a) or 399(6)(a) of the Companies Act 1948 ; or

• (d) section 20(3)(b) of the Administration of Justice Act 1965,

shall affect any case in which the petition for sequestration, bankruptcy petition or winding-up petition, as the case may be, was presented before the coming into force of the increase.

2

No reduction in any sum specified in—

• (a) section 174 or 175(6) of the said Act of 1913 ;

• (b) section 105(1) or 129 of the said Act of 1914 ; or

• (c) section 218(3) or 220(3) of the said Act of 1948,

shall affect any case in which the proceedings were begun before the coming into force of the reduction.

3

No increase or reduction in the sum specified in section 38(2) of the said Act of 1914 shall affect any case in which the date of the receiving order occurred before the coming into force of the increase or reduction.

4

No increase or reduction in the sum specified in section 118(1)(b) or (c) of the said Act of 1913 shall affect any case in which the date of the award of sequestration occurred before the coming into force of the increase or reduction.

5

No increase or reduction in any sum specified in—

• (a) section 33(1)(b) or (c) or 50(3) of the said Act of 1914 ; or

• (b) section 18(4) of the Reinstatement in Civil Employment Act 1944,

shall affect any case where the date of the receiving order (or, in relation to the estate of a person dying insolvent, the date of his death) occurred before the coming into force of the increase or reduction.

6

No increase or reduction in the sum specified in section 319(2) of the said Act of 1948 shall affect any case where the relevant date within the meaning of that section (or, where that section applies by virtue of section 94 of that Act, the date referred to in section 94(3)) occurred before the coming into force of the increase or reduction.

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No increase or reduction in any sum specified in—

• (a) section 41(2) of the said Act of 1914 ; or

• (b) section 326(2) of the said Act of 1948,

shall affect any case where, the goods are sold, or the payment to avoid sale is made, before the coming into force of the increase or reduction.

SCHEDULE 2

The Bankruptcy Act 1914

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The Companies Act 1948

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In section 248(1) of the Companies Act 1948 for the words " the Companies Liquidation Account" there shall be substituted the words " the Insolvency Services Account ".

4

In section 343(1) of that Act for the words "the Companies Liquidation Account" there shall be substituted the words " the Insolvency Services Account ".

The Insolvency Services (Accounting and Investment) Act 1970

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SCHEDULE 3

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Editorial notes

[^key-da95af80d5bebe2141b5dd9294d4cb01]: Act repealed (22.7.2004) by Statute Law (Repeals) Act 2004 (c. 14), Sch. 1 Pt. 17 Group 6 (with Sch. 2 para. 9,10,17)