hi suzanne, firstly thanks for your help yesterday, you briefly mentioned the 5 year rule that the OR adheres to when dealing with interests in properties, could you please tell me more? many thanks (again) andrew m
Section 339 of the Insolvency Act 1986 refers to Transactions at Undervalue and effects transfer of assets. The 'relevant time' under this section covers transactions to a non associate in the period of 5 years ending with the bankruptcy petition, and for associates in the period of 2 years ending with the bankruptcy petition.
Section 357 then refers to Fraudulent Disposal of Property and this provides a 'relevant time' of 5 years ending with the commencement of the bankruptcy. "The bankrupt is guilty of an offence if he makes or causes to be made in the priod of 5 years ending with the commencement of the bankruptcy.......any gift or transfer of, or any charge on, his property"
Under both of these sections the OR or Trustee can overturn the transactions.
a question for Suzanne please
Posted - 17 September 2008 : 08:10:52
