Insolvency Act 1986, section 360

Obtaining credit; engaging in business

Part IX Bankruptcy

(1)The bankrupt is guilty of an offence if—

(a)either alone or jointly with any other person, he obtains credit to the extent of the prescribed amount or more without giving the person from whom he obtains it the relevant information about his status; or

(b)he engages (whether directly or indirectly) in any business under a name other than that in which he was [F952madeF952] bankrupt without disclosing to all persons with whom he enters into any business transaction the name in which he was so adjudged.

(2)The reference to the bankrupt obtaining credit includes the following cases—

(a)where goods are bailed to him under a hire-purchase agreement, or agreed to be sold to him under a conditional sale agreement, and

(b)where he is paid in advance (whether in money or otherwise) for the supply of goods or services.

(3)A person whose estate has been sequestrated in Scotland, or who has been adjudged bankrupt in Northern Ireland, is guilty of an offence if, before his discharge, he does anything in England and Wales which would be an offence under subsection (1) if he were an undischarged bankrupt and the sequestration of his estate or the adjudication in Northern Ireland were an adjudication under this Part.

(4)For the purposes of subsection (1)(a), the relevant information about the status of the person in question is the information that he is an undischarged bankrupt or, as the case may be, that his estate has been sequestrated in Scotland and that he has not been discharged.

[F953 (5)This section applies to the bankrupt after discharge while a bankruptcy restrictions order is in force in respect of him.

(6)For the purposes of subsection (1)(a) as it applies by virtue of subsection (5), the relevant information about the status of the person in question is the information that a bankruptcy restrictions order is in force in respect of him.F953]

Definitions used in section 360 1

agreement

4 For the purposes of sections 72B and 72E and this Schedule “agreement” includes an agreement or undertaking effected by—

(a)contract,

(b)deed, or

(c)any other instrument intended to have effect in accordance with the law of England and Wales, Scotland or another jurisdiction.

Defined in Sch.2A para.4 · see it in the full Act

(2) “Agreement” includes any agreement or undertaking effected by—

(a)contract,

(b)deed, or

(c)any other instrument intended to have effect in accordance with the law of England and Wales, Scotland or another jurisdiction.

Defined in Sch.ZA1 para.19(2) · see it in the full Act

Cases considering section 360 5

McGuire v Rose & Ors

[2008] EWHC 2754 (Ch) · 10 October 2008

Identifies the bankruptcy court as the proper forum for the relevant complaints concerning the bankruptcy estate. (see para [33])

Consolidated Finance Ltd v Collins & Anor

[2013] EWCA Civ 475 · 8 May 2013Disapplies

Disapplies the relevance of the criminal restriction on incurring undisclosed credit because Protection knew that Mrs Collins was an undischarged bankrupt. (see para [48])

Boris Franz Becker (a bankrupt) v Mark Christopher Ford & Ors

[2024] EWHC 1001 (Ch) · 1 May 2024

The provision was cited to explain that, after discharge, a bankrupt may obtain credit or engage in business. It was not otherwise construed. (see para [29])

What each judgment says about section 360 is in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

  1. F952Word in s. 360(1)(b) substituted (6.4.2016) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 19 para. 49; S.I. 2016/191, art. 2 (with art. 3)
  2. F953S. 360(5)(6) inserted (1.4.2004) by 2002 c. 40, ss. 257(3), 279, Sch. 21 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))