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​Cashing out a second time

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03 February 2017 / Henry Hood
Issue: 7732 / Categories: Features , Family
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Henry Hood discusses further developments in the interaction between bankruptcy & divorce cases

  • A claim under the Matrimonial Causes Act 1973 could never be property capable of vesting in a trustee in bankruptcy.

This article follows one which I wrote concerning the matter of Ian Robert (Trustee and Bankruptcy of Mr. Elichaoff deceased) v Sarah Jane Duncanson Woodall [2016] EWHC 538 (Ch), [2016] All ER (D) 233 (Mar) which was concerned with the interaction of the laws relating to bankruptcy and divorce (see “Cashing out”, NLJ, 10 June 2016, p 7).

As I then described, some of the applications made by the trustee in bankruptcy were positively surreal. This applied in particular to the trustee’s application that he should be allowed to pursue lump sum and property adjustment orders under ss 23 & 24 of the Matrimonial Causes Act 1973 (MCA 1973) against the bankrupt’s former wife. In reporting the dismissal of such an application (which is ludicrous at first blush, and does not improve on further consideration), I little

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