Authors
Authors
On 1 July 2025, the High Court handed down judgment in relation to a trustee in bankruptcy’s application for possession and sale of a bankrupt’s jointly owned matrimonial property, pursuant to section 14 of the Trusts of Land and Appointment of Trustees Act 1996 and section 335A of the Insolvency Act 1986 (IA 1986).
The application forms part of a long-running bankruptcy featuring (i) extensive “non-cooperative and obstructionist” conduct by the bankrupt (exemplified by the issue of two arrest warrants pursuant to section 279(3) IA 1986 and most recently, section 366(3) IA 1986, as a result of failing to attend a private examination); and (ii) numerous unfounded allegations against the solicitors, barristers, public officials and judiciary involved.
The judgment of Chief ICC Judge Briggs confirms the statutory presumption under section 335A IA 1986 strongly favours creditors after the one year anniversary of the commencement of the bankruptcy, unless exceptional circumstances are substantiated with supporting evidence.
Background
Vanessa Temblett was adjudged bankrupt on 22 July 2021, on the petition of Bath & North East Somerset Council in relation to c. £15,000 of unpaid council tax liabilities relating to a derelict property in Bath.
Application
The trustee in bankruptcy made an application to court seeking an order for possession and sale of the bankrupt’s jointly owned property, pursuant to section 14 of the Trusts of Land and Appointment of Trustees Act 1996 and section 335A of the Insolvency Act 1986.
Decision
The court found that 50% of the beneficial interest in the property vested in the trustee in bankruptcy pursuant to section 306 IA 1986 and granted the trustee’s application for possession and sale of the property.
No exceptional circumstances were found to justify a departure from the statutory presumption as set out in section 335A 1986 that the interests of creditors outweigh all other considerations after the one year anniversary of the commencement of the bankruptcy.
The court emphasised the statutory requirement of a trustee in bankruptcy to get in, realise and distribute the bankrupt’s estate in accordance with section 305 IA 1986 and specifically deal with the bankrupt’s matrimonial home in accordance with the three year deadline stipulated in section 283A IA 1986.
The judgment of Chief ICC Judge Briggs considers the consistent non-cooperation and obstructionist conduct of the bankrupt. Throughout the bankruptcy, this was exemplified by the Official Receiver bringing an application to suspend the automatic discharge from bankruptcy pursuant to section 279(3) of the Insolvency Act 1986 and subsequent arrest warrants being issued due to the failure of the bankrupt and the second respondent to attend for a private examination pursuant to section 366(3) IA 1986.
The Judge also noted the trustee in bankruptcy’s costs as being high in proportion to the petition debt, as a result of the bankrupt’s non-cooperation, and various unsuccessful applications brought by the bankrupt to set aside various orders and/or stays.
Takeaways
- A trustee in bankruptcy is under a statutory duty to get in, realise and distribute the bankrupt’s estate, pursuant to section 305 IA 1986. They have a particular duty to deal with matrimonial property within three years from the commencement of the bankruptcy, pursuant to section 283A 1986.
- The statutory presumption under section 335A 1986 favours the interests of creditors after one year following the commencement of the bankruptcy, unless exceptional circumstances are substantiated.
- Non-cooperation and obstructive conduct on the part of the bankrupt runs the risk of increasing the costs in the bankruptcy estate.
- Allegations of procedural impropriety; political conspiracies; forged documents; corruption; and judicial misconduct must be supported by evidence, otherwise they may be dismissed without merit.
Full judgment: Armstrong v Temblett & Anor [2025] EWHC 1649 (Ch) (01 July 2025)