335A. Rights under trusts of land(1) Any application by a trustee of a bankrupt's estate under section 14 of the Trusts of Land and Appointment of Trustees Act 1996 (powers of court in relation to trusts of land) for an order under that section for the sale of land shall be made to the court having jurisdiction in relation to the bankruptcy.
(2) On such an application the court shall make such an order as it thinks just and reasonable having regard to -
(a) the interests of the bankrupt's creditors;
(b) where the application is made in respect of land which includes a dwelling house which is or has been the home of the bankrupt or the bankrupt's spouse or former spouse -
(i) the conduct of the spouse or former spouse, so far as contributing to the bankruptcy,
(ii) the needs and financial resources of the spouse or former spouse, and
(iii) the needs of any children; and
all the circumstances of the case other than the needs of the bankrupt.
(3) Where such application is made after the end of the period of one year beginning with the first vesting under Chapter IV of this Part of the bankrupt's estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt's creditors outweigh all other considerations.
(4) The powers conferred on the court by this section are exercisable on an application whether it is made before or after the commencement of this section.
Rights of occupation 336. Rights of occupation etc. of bankrupt's spouse
337. Rights of occupation of bankrupt(1) Nothing occurring in the initial period of the bankruptcy (that is to sat, the period beginning with the day of the presentation of the petition for the bankruptcy order and ending with the vesting of the bankrupt's estate in a trustee) is to be taken as having given rise to any rights of occupation under the Matrimonial Homes Act 1983 in relation to a dwelling house comprised in the bankrupt's estate.
(2) Where a spouse's rights of occupation under the Act of 1983 are a charge on the estate or interest of the other spouse, or of trustees for the other spouse, and the spouse is adjudged bankrupt -
(a) the charge continues to subsist notwithstanding the bankruptcy and, subject to the provisions of that Act, binds the trustee of the bankrupt's estate and persons deriving title under that trustee, and
(b) any application for an order under section 1 of that Act shall be made to the court having jurisdiction in relation to the bankruptcy.
(3) Where a person and his spouse or former spouse are trustees for sale of a dwelling house and that person is adjudged bankrupt, any application by the trustee of the bankrupt's estate for an order under section 30 of the Law of Property Act 1925 (powers of court where trustees for sale refuse to act) shall be made to the court having jurisdiction in relation to the bankruptcy.
(4) On such an application as is mentioned in subsection (2) or (3) the court shall make such order under section 1 of the Act of 1925 as it thinks just and reasonable having regard to -
(a) the interests of the bankrupt's creditors,
(b) the conduct of the spouse or former spouse, so far as contributing to the bankruptcy,
(c) the needs and financial resources of the spouse or former spouse,
(d) the needs of any children, and
(e) all the circumstances of the case other than the needs of the bankrupt.
(5) Where such an application is made after the end of the period of one year beginning with the first vesting under Chapter IV of this Part of the bankrupt's estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt's creditors outweigh all other considerations.
338. Payments in respect of premises occupied by bankrupt(1) This section applies where -
(a) a person who is entitled to occupy a dwelling house by virtue of a beneficial estate or interest is adjudged bankrupt, and
(b) any persons under the age of 18 with whom that person had at some time occupied that dwelling house had their home with that person at the time when the bankruptcy petition was presented and at the commence- ment of the bankruptcy.
(2) Whether or not the bankrupt's spouse (if any) has rights of occupation under the Matrimonial Homes Act 1983 -
(a) the bankrupt has the following rights as against the trustee of his estate -
(i) if in occupation, a right not to be evicted or excluded from the dwelling house or any part of it, except with the leave of the court,
(ii) if not in occupation, a right with the leave of the court to enter into and occupy the dwelling house, and
(b) the bankrupt's rights are a charge, having the like priority as an equitable interest created immediately before the commencement of the bankruptcy, on so much of his estate or interests in the dwelling house as vests in the trustee.
(3) The Act of 1983 has effect, with the necessary modifications, as if -
(a) the rights conferred by paragraph (a) of subsection (2) were rights of occupation under that Act,
(b) any application for leave such as is mentioned in that paragraph were an application for an order under section 1 of that Act, and
(c) any charge under paragraph (b) of that subsection on the estate or interest of the trustee were a charge under that Act on the estate or interest of a spouse.
(4) Any application for leave such as is mentioned in subsection (2) (a) or otherwise by virtue of this section for an order under section 1 of the Act of 1983 shall be made to the court having jurisdiction in relation to the bankruptcy.
(5) On such an application the court shall make such order under section 1 of the Act of 1983 as it thinks just and reasonable having regard to the interests of the creditors, to the bankrupt's financial resources, to the needs of the children and to all the circumstances of the case other than the needs of the bankrupt.
(6) Where such an application is made after the end of the period of one year beginning with the first vesting (under Chapter IV of this Part) of the bankrupt's estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional , that the interests of the bankrupt's creditors outweigh all other considerations.
Where any premises comprised in a bankrupt's estate are occupied by him (whether by virtue of the preceding section or otherwise) on condition that he makes payments towards satisfying any liability arising under a mortgage of the premises or otherwise towards the outgoings of the premises, the bankrupt does not, by virtue of those payments, acquire any interest in the premises.
Adjustment of prior transactions, etc 339. Transaction at an undervalue
340. Preferences(1) Subject as follows in this section and section 341 and 342, where an individual is adjudged bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt's estate may apply to the court for an order under this section.
(2) The court shall, on such an application, make such order as it thinks fir for restoring the position to what it would have been if that individual had not entered into that transaction.
(3) For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if -
(a) he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration.
(b) he enters into a transaction with that person in consideration of marriage, or
(c) he enters into a transaction with that person for a consideration the value of which, in money or money's worth, is significantly less than the value, in money or money's worth, of the consideration provided by the individual.
341. "Relevant time" under sections 339, 340(1) Subject as follows in this and the next two sections, where an individual is adjudged bankrupt and he has a relevant time (defined in section 341) given a preference to any person, the trustee of the bankrupt's estate may apply to the court for an order under this section.
(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not given that preference.
(3) For the purposes of this and the next sections, an individual gives a preference to a person if -
(a) that person is one of the individual's creditors or a surety or guarantor for any of his debts or other liabilities,
(b) the individual does anything or suffers anything to be done which (in either case) has the effect of putting that person into a position which, in the event of the individual's bankruptcy, will be better than the position he would have been in if that thing had not been done.
(4) The court shall not make an order under this section in respect of a preference given to any person unless the individual who gave the preference was influenced in deciding to give it by a desire to produce in relation to that person the effect mentioned in sub- section (3)(b) above.
(5) An individual who has given a preference to a person who, at the time the preference was given, was an associate of his (otherwise than by reason only of being his employee) is presumed, unless the contrary is shown, to have been influenced in deciding to give it by such a desire as is mentioned in subsection (4).
(6) The fact that something has been done in pursuance of the order of a court does not, without more, prevent the doing or suffering of that thing from constituting the giving of a preference.
(1) Subject as follows, the time at which an individual enters into a transaction at an undervalue or gives a preference is a relevant time if the transaction is entered into or the preference given -
(a) in the case of a transaction at an undervalue, at a time in the period of 5 years ending wit the day of the presentation of the bankruptcy petition on which the individual is adjudged bankrupt.
(b) in the case of a preference which is not a transaction at an undervalue and is given to a person sho is an associate of the individual (otherwise than by reason only of being his employee), at a time in the period of 2 years ending with that day, and
(c) in any other case of a preference which is not a transaction at an undervalue, at a time in the period of 6 months ending with that day.
(2) Where an individual enters into a transaction at an undervalue or gives a preference at a time mentioned in paragraph (a), (b) or of subsection (1) (not being, in the case of a transaction at an undervalue, a time less than 2 years before the end of the period mentioned in paragraph (a), that time is not a relevant time for the purposes of sections 339 and 340 unless the individual -
(a) is insolvent at that time, or
(b) becomes insolvent in consequence of the transaction or preference;
but the requirements of this subsection are presumed to be satisfied, unless the contrary is shown, in relation to any transaction at an undervalue which is entered into by an individual with a person who is an associate of his (otherwise than by reason only of being his employee).
(3) For the purposes of subsection (2), an individual is insolvent if -
(a) he is unable to pay his debts as they fall due, or
(b) the value of his assets is less than the amount of his liabilities, taking into account his contingent and prospective liabilities.
(4) A transaction entered into or preference given by a person who is subsequently adjudged bankrupt on a petition under section 264(1)(d) criminal bankruptcy) is to be treated as having been entered into or given at a relevant time for the purposes of sections 339 and 340 if it was entered into or given at any time on or after the date specified for the purposes of this subsection in the criminal bankruptcy order on which the petition was based.
(5) No order shall be made under section 339 or 340 by virtue of subsection (4) of this section where an appeal is pending (within the meaning of section 277) against the individual's conviction of any offence by virtue of which the criminal bankruptcy order was made.