Q&As

If a joint owner ('the former joint owner') transfers their interest to the other joint owner for no consideration, the remaining joint owner sells to a buyer within five years and the former joint owner becomes bankrupt, can the former joint owner's trustee disturb the transfer to the buyer or claim compensation/damages/payment from the buyer by reason of a transfer at an undervalue by the former joint owner?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on: 19 March 2019
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Bankruptcy and transactions at undervalue

Section 339 of the Insolvency Act 1986 (IA 1986) provides that the trustee of a bankrupt’s estate may apply to the court for an order setting aside a transaction at an undervalue entered into ‘at a relevant time’. The court will make such order as it thinks fit to restore the position that would have pertained but for the transaction. IA 1986, s 339(3) provides that a transaction is at an undervalue if a person makes a gift or otherwise enters into a transaction on terms that provide for them to receive no consideration; enters into a transaction in consideration or marriage; or enters

Chris Bryden
Chris Bryden

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).

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Jurisdiction(s):
United Kingdom
Key definition:
Damages definition
What does Damages mean?

The monetary compensation awarded by law to a person for the legal wrong done to him.

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