The Official Receiver v Negus

The Official Receiver v Negus

It is not a sufficient or relevant reason for refusing to make an income payments order that sums received are unlikely to enable a distribution to unsecured creditors. The statutory scheme gives priority to fees, and the court cannot treat them as less important than provable debts when deciding whether to make an income payments order.

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 Judgment
Outcome
Appeal allowed
Legal Topics
Income Payments Order, Bankruptcy Fees Priority, Distribution to Creditors
Insolvency Law Income Payments Order Bankruptcy Fees Priority Distribution to Creditors

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Parties

The Official Receiver

Applicant/claimant

Jamie Daniel Negus

Respondent/defendant

Procedural Posture

Bankruptcy Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether the likelihood of benefit to unsecured creditors is a sufficient ground to refuse an income payments order under section 310 of the Insolvency Act 1986

Ratio Decidendi

It is not a sufficient or relevant reason for refusing to make an income payments order that sums received are unlikely to enable a distribution to unsecured creditors. The statutory scheme gives priority to fees, and the court cannot treat them 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 sought by the Official Receiver