Insolvency Act 1986, section 279

Duration

Part IX Bankruptcy

(1)A bankrupt is discharged from bankruptcy at the end of the period of one year beginning with the date on which the bankruptcy commences.

F684(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)On the application of the official receiver or the trustee of a bankrupt’s estate, the court may order that the period specified in subsection (1) shall cease to run until—

(a)the end of a specified period, or

(b)the fulfilment of a specified condition.

(4)The court may make an order under subsection (3) only if satisfied that the bankrupt has failed or is failing to comply with an obligation under this Part.

(5) In subsection (3)(b) “condition” includes a condition requiring that the court be satisfied of something.

(6)In the case of an individual who is [F685 madeF685] bankrupt on a petition under section 264(1)(d)—

(a)subsections (1) to (5) shall not apply, and

(b)the bankrupt is discharged from bankruptcy by an order of the court under section 280.

(7)This section is without prejudice to any power of the court to annul a bankruptcy order.F683]

Cases considering section 279 33

Bramston v Haut

[2012] EWCA Civ 1637 · 14 December 2012Limits

The power to suspend discharge is confined to purposes connected with non-compliance under Part IX and the continued disabilities of undischarged bankruptcy. It cannot be used merely to provide time for an individual voluntary arrangement. (see paras [47]; [51]-[52]; [65]) The court must separately determine whether the bankrupt failed or was failing to comply with a Part IX obligation. Competing assertions and the bankrupt’s consent to suspension could not substitute for that finding. (see paras [53]-[56])

Demarco v Perkins

[2006] EWCA Civ 188 · 23 January 2006

Applies the automatic-discharge provision to identify 26 March 2000 as the date after which the debtor was no longer an undischarged bankrupt and the IVA annulment route was unavailable. (see para [9])

Bagnall v Official Receiver

[2003] EWCA Civ 1925 · 1 December 2003Interprets

Section 279 provides for automatic discharge after the relevant three-year period. Once that period has expired, a later order under section 279(3) cannot revive the bankruptcy; that consequence supports the availability of interim relief before expiry. (see paras [25]-[27]) Section 279(3) is construed as permitting an interim suspension order before the substantive hearing. The court must have reasonable grounds, on the available material, to conclude that a final suspension order is likely. (see paras [25]-[28])

13 more judgments, and what each says about section 279, are in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Amendments

  1. F683S. 279 substituted (1.4.2004) by 2002 c. 40, ss. 256, 279 (with s. 249(6), Sch. 19); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
  2. F684S. 279(2) omitted (1.10.2013) by virtue of Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 21 para. 5; S.I. 2013/2227, art. 2(n) (with art. 6)
  3. F685Word in 279(6) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 12; S.I. 2016/191, art. 2 (with art. 3)

Modifications

  1. C963S. 279 excluded (1.4.2004) by 2002 c. 40, ss. 256(2), 279, Sch. 19 para. 3 (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))
  2. C964S. 279(3)-(5) applied (1.4.2004) by 2002 c. 40, ss. 256(2), 279, Sch. 19 paras. 4(3), 5(5) (with s. 249(6)); S.I. 2003/2093, art. 2(2), Sch. 2 (subject to arts. 3-8 (as amended by S.I. 2003/2332, art. 2))