Insolvency Act 1986, section 330

Final distribution

Part IX Bankruptcy

(1)When the trustee has realised all the bankrupt’s estate or so much of it as can, in the trustee’s opinion, be realised without needlessly protracting the trusteeship, he shall give notice in the prescribed manner either—

(a)of his intention to declare a final dividend, or

(b)that no dividend, or further dividend, will be declared.

[F848 (1A)A notice under subsection (1)(b) need not be given to opted-out creditors.F848]

(2) The notice under subsection (1) shall contain the prescribed particulars and shall require claims against the bankrupt’s estate to be established by a date (“the final date”) specified in the notice.

(3)The court may, on the application of any person, postpone the final date.

(4)After the final date, the trustee shall—

(a)defray any outstanding expenses of the bankruptcy out of the bankrupt’s estate, and

(b)if he intends to declare a final dividend, declare and distribute that dividend without regard to the claim of any person in respect of a debt not already proved in the bankruptcy.

(5)If a surplus remains after payment in full and with interest of all the bankrupt’s creditors and the payment of the expenses of the bankruptcy, the bankrupt is entitled to the surplus.

F849(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cases considering section 330 9

Purewal v Countrywide Residential Lettings Ltd & Anor

[2015] EWCA Civ 1122 · 5 November 2015Limits

The court confirmed that any surplus in the bankruptcy would be returned to the bankrupt, but held that this possible entitlement did not preserve a direct interest in the mortgaged property or require a receiver’s duty to the bankrupt. (see para [18])

Ram v Ram & Ors

[2004] EWCA Civ 1684 · 16 November 2004Interprets

The bankrupt is entitled to a surplus only after creditors, interest and bankruptcy expenses have been paid in full. Before final ascertainment, this is conditional and gives no beneficial interest in particular property (see paras [41]–[44]).

Cooke, Young & Keidan LLP v Laurence Howard Davis & Anor

[2026] EWHC 2093 (Ch) · 5 August 2026

Confirms the bankrupt’s entitlement to any surplus after full payment of creditors, interest and bankruptcy expenses, but the judgment holds that this does not create a present beneficial interest before the surplus is ascertained. (see para [45])

What each judgment says about section 330 is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F848S. 330(1A) inserted (26.5.2015 for specified purposes, 6.4.2017 for E.W. in so far as not already in force) by Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 9 para. 82; S.I. 2015/1329, reg. 3(d); S.I. 2016/1020, reg. 4(e) (with reg. 5) (as amended by S.I. 2017/363, reg. 3)
  2. F849S. 330(6) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 34 (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

Modifications

  1. C1064S. 330 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II (as amended (31.5.2002) by S.I. 2002/1309, art. 3(3)(4))
  2. C1065S. 330(4)(b) modified by S.I. 1986/1999 art. 5, Sch. 2 (as amended (6.4.2016) by The Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 (S.I. 2016/481), reg. 1, Sch. 2 para. 2(8)(c))