The Official Receiver v Negus [2011] EWHC 3719 (Ch) (16 December 2011)

The Official Receiver v Negus [2011] EWHC 3719 (Ch) (16 December 2011)

It is not a sufficient reason for refusing to make an income payments order that sums received are unlikely to enable a distribution to unsecured creditors; the court cannot treat fees due to the Official Receiver and Secretary of State as less important than provable debts when deciding whether to make an income payments order.

Citation
[2011] EWHC 3719 (Ch)
Parties
Applicant/claimant: The Official Receiver; Respondent/defendant: Jamie Daniel Negus
Jurisdiction
England and Wales
Judgment Date
16 December 2011
Procedural Posture
Bankruptcy Appeal / Appeal From District Judge's Refusal to Make Income Payments Order
Outcome
Appeal allowed
Legal Topics
Income Payments Order, Priority of Fees, Distribution of Bankrupt's Estate
Insolvency Bankruptcy Income Payments Order Priority of Fees Distribution of Bankrupt's Estate

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Parties

The Official Receiver

Applicant/claimant

Jamie Daniel Negus

Respondent/defendant

Procedural Posture

Bankruptcy Appeal / Appeal From District Judge's Refusal to Make Income Payments Order

Legal Issues

  1. 1 Is it a sufficient ground for refusing to make an income payments order under section 310 of the Insolvency Act 1986 that sums received will not enable a distribution to unsecured creditors?
  2. 2 Are fees payable to the Official Receiver and Secretary of State less important than unsecured creditors' claims when considering income payments orders?

Ratio Decidendi

It is not a sufficient reason for refusing to make an income payments order that sums received are unlikely to enable a distribution to unsecured creditors; the court cannot treat fees due to the Official Receiver and Secretary of State as less important than provable debts when deciding whether to make an income payments order.

Court Disposition

Appeal allowed

Orders

  • Income payments order to be made as proposed by the Official Receiver
  • No order for costs against Mr Negus