Insolvency Act 1986, section 307

After-acquired property

Part IX Bankruptcy

(1)Subject to this section and section 309, the trustee may by notice in writing claim for the bankrupt’s estate any property which has been acquired by, or has devolved upon, the bankrupt since the commencement of the bankruptcy.

(2)A notice under this section shall not be served in respect of—

(a)any property falling within subsection (2) or (3) of section 283 in Chapter II,

[F800 (aa)any property vesting in the bankrupt by virtue of section 283A in Chapter II,F800]

(b)any property which by virtue of any other enactment is excluded from the bankrupt’s estate, or

(c)without prejudice to section 280(2)(c) (order of court on application for discharge), any property which is acquired by, or devolves upon, the bankrupt after his discharge.

(3)[F801 Subject to subsections (4) and (4A)F801] , upon the service on the bankrupt of a notice under this section the property to which the notice relates shall vest in the trustee as part of the bankrupt’s estate; and the trustee’s title to that property has relation back to the time at which the property was acquired by, or devolved upon, the bankrupt.

(4)Where, whether before or after service [F802on the bankruptF802] of a notice under this section—

(a)F803a person acquires property in good faith, for value and without notice of the bankruptcy, ...

F803(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F804,F805,F805the trustee is not in respect of that property ... entitled by virtue of this section to any remedy against that person ..., or any person whose title to any property derives from that person ....

[F806 (4A)Where a banker enters into a transaction before service on the banker of a notice under this section (and whether before or after service on the bankrupt of a notice under this section) the trustee is not in respect of that transaction entitled by virtue of this section to any remedy against the banker.

This subsection applies whether or not the banker has notice of the bankruptcy.F806]

(5)References in this section to property do not include any property which, as part of the bankrupt’s income, may be the subject of an income payments order under section 310.

Cases considering section 307 36

Horton v Henry (Rev 1)

[2016] EWCA Civ 989 · 7 October 2016

Property excluded from the estate by another enactment cannot be claimed by notice as after-acquired property. The court applied that exclusion to protected pension rights. (see paras [24]-[26]; [44]) The court distinguished property claimable as after-acquired property from income which may instead be the subject of an income payments order. This did not make unexercised protected pension rights income. (see paras [25]-[26]; [50])

Robert Armstrong & Anor v Biraja Pada Bhattacharya & Anor

[2025] EWHC 597 (Ch) · 14 March 2025

The court treated the £7,471 received from Lovell Son & Pitfield as after-acquired property and ordered payment to the trustees, following the section 307 notice and the absence of payment. (see paras [5]; [66]-[67])

Adrian Hyde & Anor v Myck Djurberg & Ors

[2024] EWHC 1188 (Ch) · 17 May 2024Interprets

The court found that the Settlement Payment was property acquired by or devolving upon the bankrupt after commencement of bankruptcy. A valid trustee’s notice caused the payment to vest in the trustees with title relating back to acquisition. (see paras [40]-[43]; [69]-[70]) Service of a valid notice vested the Settlement Payment in the trustees, and their title related back to the date on which the payment was acquired. (see paras [40]; [42]; [69]-[70]) The court treated good faith, provision of value and absence of notice as cumulative requirements for recipient protection. Because no respondent showed that value had been provided, the protection did not apply. (see paras [40]; [59]; [71])

16 more judgments, and what each says about section 307, are in the case-law panel in the full Act.

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F800S. 307(2)(aa) inserted (1.4.2004) by 2002 c. 40, ss. 261(4), 279 (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. F801Words in s. 307(3) substituted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 16(2); S.I. 2015/1732, art. 2(e)(v)
  3. F802Words in s. 307(4) inserted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 16(3)(a); S.I. 2015/1732, art. 2(e)(v)
  4. F803S. 307(4)(b) and word omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 16(3)(b); S.I. 2015/1732, art. 2(e)(v)
  5. F804Words in s. 307(4) omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 16(3)(c)(i); S.I. 2015/1732, art. 2(e)(v)
  6. F805Words in s. 307(4) omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 16(3)(c)(ii); S.I. 2015/1732, art. 2(e)(v)
  7. F806S. 307(4A) inserted (1.10.2015) by Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 16(4); S.I. 2015/1732, art. 2(e)(v)

Modifications

  1. C1021Ss. 298-307 applied (with modifications) by S.I. 1986/1999, art. 3, Sch. 1 Pt. II
  2. C1022S. 307 amended by Education (Student Loans) Act 1990 (c. 6, SIF 41:1, 2), s. 1(5), Sch. 2 para. 5(1)
  3. C1023S. 307 restricted (12.8.1998) by S.I. 1998/2003, reg. 13(1)
  4. C1024S. 307 excluded (16.6.2016) by The Education (Postgraduate Masters Degree Loans) Regulations 2016 (S.I. 2016/606), regs. 1(1), 97(1)(a)