s.107Settlement by debtor, how far void as against Trustee
107
Section 107Part 17 — Benefit of Transactions Affecting the Debtor and the Debtor’s Property

Settlement by debtor, how far void as against Trustee

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Any settlement of property not being a settlement made before and in consideration of marriage, or civil partnership, or made in favour of a purchaser or incumbrancer in good faith and for valuable consideration, or a settlement made on or for the spouse or children of the settlor of property which has accrued to the settlor after marriage, or civil partnership, in right of the settlor’s spouse, or civil partner, shall, if a provisional order in bankruptcy, or an absolute order in bankruptcy in cases where no provisional order is made, takes effect against the settlor within two years after the date of the settlement, be void against the Trustee and shall, if the settlor becomes bankrupt at any subsequent time within ten years after the date of the settlement be void against the Trustee unless the parties claiming under the settlement can prove that the settlor was, at the time of making the settlement, able to pay all the settlor’s debts without the aid of the property comprised in the settlement, and that the interest of the settlor in such property has passed to the trustee of such settlement on the execution thereof.
Any covenant or contract made by any person in consideration of marriage, or civil partnership, for the future settlement upon that person’s spouse or children of any money or property wherein that person had not, at the date of that person’s marriage, or civil partnership, any estate or interest whether vested or contingent, in possession or remainder and not being money or property of or in right of that person’s spouse, shall, if a provisional order, or an absolute order in bankruptcy in cases where no provisional order is made, takes effect against that person before such money or property has been actually transferred or paid pursuant to such contract or covenant be void against the Trustee.
In this section — “settlement” includes any conveyance, gift or transfer of property.

Defined Terms

settlement

Referenced By