Definition of the bankruptcy estate and which assets vest in the trustee in bankruptcy

'Bankruptcy estate' is defined in section 283 of the Insolvency Act 1986 (IA 1986) as being, broadly speaking, property which either belonged to the bankrupt or in which the bankrupt had an interest, at the date the bankruptcy order was made.

Property which comprises the bankruptcy estate is widely defined by IA 1986, s 436, and includes 'money, goods, things in action, land and every description of property wherever situated and also obligations and every description of interest, whether present or future or vested or contingent, arising out of, or incidental to, property'. This statutory definition is sufficiently broad to cover a wide spectrum of property—both tangible and intangible—and wherever situated (albeit for real estate, the usual rules of international law provide that the bankrupt's trustee in bankruptcy (trustee) will require an order from the court where that property is situated to secure and enforce their rights).

For further reading, see Practice Note: What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to