An obstacle to the hunt for recoveries
Trustees in bankruptcy well know what it is like to take an appointment where the bankrupt is convinced that he has a strong cause of action against a third party, in particular one who it is alleged have brought about the financial difficulties. There is an obvious reluctance to issue, or continue, proceedings based upon the evidence of someone with an axe to grind. It is commonly thought that the trustee is free to dispose of the cause of action back to the bankrupt free of any potential costs liability in respect of those proceedings. Unfortunately, the Court of Appeal has recently confirmed that such a view is not automatically the case.
To view the full text, please log in.
To receive a FREE 14 day online trial to Insolvency Law Online click here.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...