Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Joint Bankruptcy

Document Cited authorities 32 Cited in Related
AuthorElspeth Berry/Rebecca Parry
Pages485-545

Chapter 8


Joint Bankruptcy

8.1 SCHEME OF THE INSOLVENCY ACT 1986 AND THE INSOLVENT PARTNERSHIPS ORDER 1994 FOR PARTNERSHIP JOINT BANKRUPTCY

The IPO modifies the IA 1986 to provide a unique bankruptcy procedure for partnerships in England and Wales,1whereby all partners are made bankrupt in one single integrated procedure. Although this procedure is based on the provisions of the IA 1986 applicable to bankruptcies initiated by debtors, it will not become subject to the new regime introduced by the Enterprise and Regulatory Reform Act 2013 under which debtors will apply to an adjudicator rather than petition the court. The amendments to the IPO necessary to preserve the current system are expected to be made in the legislative session 2015–16, which is when the Enterprise and Regulatory Reform Act 2013 reforms to the IA 1986 are also likely to come into force.

8.2 APPLICABLE PROVISIONS OF THE INSOLVENCY ACT 1986

Joint bankruptcy is governed by the provisions of the IA 1986 as applied and modified by article 11 of, and Schedule 7 to, the IPO, and references in this chapter are, unless otherwise indicated, to the IA 1986 as so applied and modified.

Article 11 of the IPO applies Parts IX–XIX (sections 264–444 and the Schedules) of the IA 1986 in so far as those provisions relate to the presentation of a bankruptcy petition by a debtor. These provisions apply subject to:

1Neither the IPO nor the bankruptcy provisions of the IA 1986 apply in Scotland or Northern

Ireland (IA 1986, ss 440(2)(b) and 441).

486 Law of Insolvent Partnerships and Limited Liability Partnerships

 the modification of sections 264–266, 272, 283–284, 290, 292–301,
305, 312, 313A, 328, 331 and 387 by Schedule 7 to the IPO;2and  the express disapplication of sections 273–274 and 287 by article 11 of the IPO.

In addition to the sections expressly excluded, certain other sections are not in substance applicable because they:

 do not apply to debtor’s petitions;3

 do not apply to bankruptcy;4

 only apply to corporate bodies;5

 cross refer to provisions of the IA 1986 which have not been applied to joint bankruptcy petitions by the IPO;6or

 cross refer to subsections which have themselves been omitted from the modified version of the section applied by the IPO.7

These provisions are to be read in the light of article 3 of the IPO, which provides that expressions appropriate to companies are to be construed as references to the corresponding persons, documents or organs appropriate to a partnership, and in particular that references to companies are to be construed as references to insolvent partnerships (see further 1.3.1).

The end result is the application, modification or disapplication of the relevant provisions of the IA 1986 relating to bankruptcy as summarised in Table 8.1.

It should also be noted that the SBEEA 2015 inserts a number of new sections into the IA 1986 and amends others. Some are already in force, while others will come into force from a date to be appointed. However, where the IPO contains a modified version of the relevant IA 1986 section/Schedule, additional partnership-specific legislation will be necessary to incorporate the SBEEA 2015 revisions. This is expected in the legislative session 2015–16. Where the IPO is likely to be so amended, this is noted in Table 8.1.

2IPO, Sch 7, para 1(2).

3IA 1986, ss 267–271 apply only to creditor’s petitions; s 288 applies only to orders other than on a debtor’s petition; s 276 applies only to petitions by a supervisor of a voluntary arrangement; and ss 277, 279(6), 282(2), 327 and 402 apply only to criminal bankruptcy orders.

4IA 1986, s 429 applies to administration orders under the County Courts Act 1984.

5IA 1986, ss 411, 414, 416–417A, 432 and 434A–434C, and Schs 8 and 11, Pt I apply only to companies or bodies corporate.

6IA 1986, ss 416–417A.

7IA 1986, ss 276–277, 279(6), 327 and 402 relate to s 264(1)(c) and/or (d), which subsections do not exist in s 264, as modified by the IPO, Sch 7, para 2; and s 280 refers to s 279(6). Section 308A relates to s 283(3A) which subsection does not exist in s 283, as modified by IPO, Sch 7, para 7.

Table 8.1 Sections of, and Schedules to, the Insolvency Act 1986 relating to bankruptcy, applied/modified by Schedule 7 to the Insolvent Partnerships Order 1994

Section of IA 1986

Applicable:
– without modification (IA) – as modified (IPO)
– not applicable (NA)

Details:
(unless otherwise indicated:
– section numbers are IA 1986
– article/Schedule numbers are IPO)

PART IX – bankruptcy

[263H–263O] Not yet in force but will be NA New procedure for bankruptcy initiated by debtor; not intended to be applied to partnerships
Inserted by the Enterprise and Regulatory Reform Act 2013 from date to be appointed

264 IPO Modified by IPO, Sch 7, para 2

265 IPO Modified by IPO, Sch 7, para 3

266 IPO Modified by IPO, Sch 7, para 4

267–271 NA Refer to creditors’ petitions

272 IPO Modified by IPO, Sch 7, para 5
Repealed by the Enterprise and Regulatory Reform Act 2013 from date to be appointed but to be preserved for the purposes of the IPO

273–274 NA Excluded by IPO, art 11(2)(a)
Repealed by the Enterprise and Regulatory Reform Act 2013 from date to be appointed

274A NA Refers to, Pt VIIA which is not applied by IPO
Repealed by the Enterprise and Regulatory Reform Act 2013 from date to be appointed

[275] Repealed

276 NA Refers to petitions by a supervisor of a voluntary arrangement and to s 264(1)(c) which does not exist in s 264 as modified by IPO, Sch 7, para 2

Details:
(unless otherwise indicated:
– section numbers are IA 1986
– article/Schedule numbers are IPO)

277 NA Refers to criminal bankruptcy and to s 264(1)(d) which does not exist in s 264 as modified by IPO, Sch

7, para 2
Prospectively repealed by the Criminal Justice Act 1988 but no date ever appointed

278 IA Applied by IPO, art 11(2)(a)

279(1)–(5) and
(7)

IA Applied by IPO, art 11(2)(a)

279(6) NA Refers to criminal bankruptcy and to s 264(1)(d) which does not exist in s 264 as modified by IPO, Sch

7, para 2

280 NA Refers to s 279(6) which relates to criminal bankruptcy and to s 264(1)(d) which does not exist in s 264 as modified by IPO, Sch 7, para 2

281 IA Applied by IPO, art 11(2)(a)

282(1) and
(3)–(4)

IA Applied by IPO, art 11(2)(a)

282(2) NA Refers to criminal bankruptcy and to s 264(1)(a)–(c) which do not exist in s 264 as modified by IPO, Sch

7, para 2

283 IPO Modified by IPO, Sch 7, para 7

Note: SBEEA 2015 amendments

283A IPO Modified by IPO, Sch 7, para 7A

284 IPO Modified by IPO, Sch 7, para 8

285–286 IA Applied by IPO, art 11(2)(a)

Section of IA 1986

Applicable:
– without modification (IA) – as modified (IPO)
– not applicable (NA)

Details:
(unless otherwise indicated:
– section numbers are IA 1986
– article/Schedule numbers are IPO)

287 NA Excluded by IPO, art 11(2)(a)

288 NA Not applicable to debtor’s petitions

289 IA Applied by IPO, art 11(2)(a)

290 IPO Modified by IPO, Sch 7, para 9

291 IA Applied by IPO, art 11(2)(a)

291A Inserted by SBEEA 2015

292 IPO Modified by IPO, Sch 7, para 10

Note: SBEEA 2015 amendments

292A Inserted by the IPO IPO, Sch 7, para 10

293–294 IPO Modified by IPO, Sch 7, para 11

Note: SBEEA 2015 repeal

295 IPO Modified by IPO, Sch 7, para 12

Note: SBEEA 2015 repeal

296 IPO Modified by IPO, Sch 7, para 13

Note: SBEEA 2015 amendments

297 IPO Modified by IPO, Sch 7, para 14

Note: SBEEA 2015 repeal

298 IPO Modified by IPO, Sch 7, para 15

Note: SBEEA 2015 amendments

Section of IA 1986

Applicable:
– without modification (IA) – as modified (IPO)
– not applicable (NA)

Details:
(unless otherwise indicated:
– section numbers are IA 1986
– article/Schedule numbers are IPO)

299 IPO Modified by IPO, Sch 7, para 16

Note: SBEEA 2015 amendments

300 IPO Modified by IPO, Sch 7, para 17

Note: SBEEA 2015 amendments

301 IPO Modified by IPO, Sch 7, para 18

Note: SBEEA 2015 amendments

301A Inserted by the IPO IPO, Sch 7, para 18

302–304 IA Applied by IPO, art 11(2)(a)

305 IPO Modified by IPO, Sch 7, para 19

306–308 IA Applied by IPO, art 11(2)(a)

308A NA Refers to s 283(3A) which does not exist in s 283 as modified by IPO, Sch 7, para 7

309–311 IA Applied by IPO, art 11(2)(a)

312 IPO Modified by IPO, Sch 7, para 20

313 IA Applied by IPO, art 11(2)(a)

313A IPO Modified by IPO, Sch 7, para 20A

314–326 IA Applied by IPO, art 11(2)(a) IPO

327 NA Refers to criminal bankruptcy and to s 264(1)(d) which does not exist in s 264 as modified by IPO, Sch

7, para 2

Section of IA 1986

Applicable:
– without modification (IA) – as modified (IPO)
– not applicable (NA)

Details:
(unless otherwise indicated:
– section numbers are IA 1986
– article/Schedule numbers are IPO)

328 IPO Modified by IPO, Sch 7, para 21

328A–328D Inserted by the IPO IPO, Sch 7, para 21

329–330 IA Applied by IPO, art 11(2)(a)

331 IPO Modified by IPO, Sch 7, para 22

Note: SBEEA 2015 amendments

332–360 IA Applied by IPO, art 11(2)(a)

[361–362] repealed

363–371 IA Applied by IPO, art 11(2)(a)

PART X – individual insolvency

372–379 IA Applied by IPO, art 11(2)(b)

379ZA–G Inserted by SBEEA 2015

379A IA Applied by IPO, art 11(2)(b)

Note: SBEEA 2015 repeal

379B IA Applied by IPO, art 11(2)(b)

379C Inserted by SBEEA 2015

PART XI – bankruptcy /individual insolvency

380–385 IA Applied by IPO, art 11(2)(b)

Section of IA 1986

Applicable:
– without modification (IA) – as modified (IPO)
– not applicable (NA)

Applicable:
– without modification (IA) – as modified (IPO)
– not applicable (NA)

Details:
(unless otherwise indicated:
– section numbers are IA 1986
– article/Schedule numbers are IPO)

Section of IA 1986

PART XII – preferential debts

386 IA Applied by IPO, art 11(2)(b)

387 IPO Modified by IPO, Sch 7, para 23

Note: SBEEA 2015 amendments

PART XIII – insolvency practitioners

388–398 IA Applied by IPO, art 11(2)(b)

PART XIV – public...

Get this document and AI-powered insights with a free trial of vLex and Vincent AI

Get Started for Free
Navigation index

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

Start Your 3-day Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant

  • Access comprehensive legal content with no limitations across vLex's unparalleled global legal database

  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

  • Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities

  • Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting

vLex

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT