Insolvency Act 1986, section 291A

First trustee in bankruptcy

Part IX Bankruptcy

(1)On the making of a bankruptcy order the official receiver becomes trustee of the bankrupt's estate, unless the court appoints another person under subsection (2).

(2)If when the order is made there is a supervisor of a voluntary arrangement approved in relation to the bankrupt under Part 8, the court may on making the order appoint the supervisor of the arrangement as the trustee.

(3)Where a person becomes trustee of a bankrupt's estate under this section, the person must give notice of that fact to the bankrupt's creditors (or, if the court so allows, advertise it in accordance with the court's directions).

(4)A notice or advertisement given by a trustee appointed under subsection (2) must explain the procedure for establishing a creditors' committee under section 301.F749]

Cases considering section 291A 7

Barker v Baxendale-Walker

[2018] EWHC 2518 (Ch) · 1 August 2018Interprets

The court confirms that section 291A(1) automatically appoints the Official Receiver on the making of a bankruptcy order unless the court appoints another person under subsection (2). It does not exclude later appointment or replacement of trustees under the court’s wider powers. (see paras [22]; [37]-[39]; [46]-[48]) The court treats section 291A(2) as identifying a specific appointment power available when the bankruptcy order is made. It does not make the statutory appointment regime exhaustive or prevent appointment of other qualified trustees under sections 292 and 363. (see paras [22]-[24]; [38]; [48])

The Official Receiver v Shop Direct Finance Company Limited

[2023] EWCA Civ 367 · 5 April 2023

Upon a bankruptcy order, the Official Receiver ordinarily becomes the first trustee unless another trustee is appointed by the court. (see para [23])

Gavin Paul Carter v Terri Ann Davies & Ors

[2024] EWHC 1536 (Ch) · 20 June 2024

The automatic appointment of the official receiver as trustee on a bankruptcy order illustrated the order’s effects on third parties and supported preserving a discretion rather than treating the order as a nullity. (see para [77])

What each judgment says about section 291A is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F749S. 291A inserted (6.4.2017 for E.W.) by Small Business, Enterprise and Employment Act 2015 (c. 26), ss. 133(1), 164(1); S.I. 2016/1020, reg. 4(f)