Insolvency Act 1986 s.278 – Commencement and continuance

The bankruptcy of an individual against whom a bankruptcy order has been made—

(a)commences with the day on which the order is made, and

(b)^F682continues until the individual is discharged under ... this Chapter.

Cases considering section 278 16

Bramston v Haut

[2012] EWCA Civ 1637 · 14 December 2012Interprets

Because an interim order could modify bankruptcy provisions, it could modify the rule that bankruptcy continues until discharge and thereby suspend automatic discharge for a specified period. (see para [57])

Nationwide Building Society v Wright & Anor

[2009] EWCA Civ 811 · 29 July 2009Defines

The court used section 278 to define commencement of individual bankruptcy as the date of the bankruptcy order, not presentation of the petition. This fixed the relevant date for completion of execution. (See para [16].)

Jonathan Harris Sinclair v Rodney Whiston-Dew & Anor

[2023] EWHC 657 (KB) · 23 March 2023Defines

The court applied the commencement rule to identify 24 June 2021, the date of the bankruptcy order, as the date from which the bankruptcy consequences took effect. The later judgment and charging order were therefore invalid as attempts to secure an asset after commencement (see para [19]).

Lockston Group Inc v Wood[2015] EWHC 2962 (Ch) · 27 October 2015
Steele, R (on the application of) v Birmingham City Council[2005] EWHC 783 (Admin) · 19 April 2005
Azuonye v Kent[2019] EWCA Civ 1289 · 19 July 2019
Ahmed & Ors v Ingram & Anor[2018] EWCA Civ 519 · 19 March 2018
Perpetual Trustee Company Ltd & Anor v BNY Corporate Trustee Services Ltd & Ors[2009] EWCA Civ 1160 · 6 November 2009
Patel v Jones[2001] EWCA Civ 779 · 24 May 2001
Cork v Rawlins[2001] EWCA Civ 197 · 2 February 2001
Edwards v Aurora Leasing Ltd & Anor[2021] EWHC 96 (Ch) · 20 January 2021
Hood v JD Classics Ltd (In Administration)[2020] EWHC 3232 (Ch) · 27 November 2020
Leopard v Robinson[2020] EWHC 2928 (Ch) · 4 November 2020
Weir v Hilsdon[2017] EWHC 983 (Ch) · 4 May 2017
Dewji v Banwaitt[2013] EWHC 3746 (QB) · 29 November 2013
The Official Receiver v Bathurst[2008] EWHC 2572 (Ch) · 4 June 2008

What each judgment says about section 278 is in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

F682Words in s. 278(b) omitted (6.4.2016) by virtue of Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 11; S.I. 2016/191, art. 2 (with art. 3)

Modifications

C962S. 278 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II