Bankruptcy (Scotland) Act 1985 (repealed)

31 Vesting of estate at date of sequestration. S

(1) Subject to section 33 of this Act [F1 and section 91(3) of the Pensions Act 1995], the whole estate of the debtor shall [F2 , by virtue of the trustee's appointment,] vest [F3 in the trustee] as at the date of sequestration F4 . . . for the benefit of the creditorsF5 . . .

(a) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

[F6 (1A) It shall not be competent for—

(a) the trustee; or

(b) any person deriving title from the trustee,

to complete title to any heritable estate in Scotland vested in the trustee by virtue of his appointment before the expiry of the period mentioned in subsection (1B) below.

(1B) That period is the period of 28 days (or such other period as may be prescribed) beginning with the day on which—

(a) the certified copy of the order of the sheriff granting warrant is recorded under subsection (1)(a) of section 14 of this Act; or

(b) the certified copy of the determination of the Accountant in Bankruptcy awarding sequestration is recorded under subsection (1A) of that section,

in the register of inhibitions.]

(2) The exercise by the F7 . . . trustee of any power conferred on him by this Act in respect of any heritable estate vested in him by virtue of [F8 his appointment] shall not be challengeable on the ground of any prior inhibitionF9 . . . .

(3) Where the debtor has an uncompleted title to any heritable estate in Scotland, the F7 . . . trustee may complete title thereto either in his own name or in the name of the debtor, but completion of title in the name of the debtor shall not validate by accretion any unperfected right in favour of any person other than the F7 . . . trustee.

(4) Any moveable property, in respect of which but for this subsection—

(a) delivery or possession; or

(b) intimation of its assignation,

would be required in order to complete title to it, shall vest in the F7 . . . trustee by virtue of [F10 his appointment] as if at the date of sequestration the F7 . . . trustee had taken delivery or possession of the property or had made intimation of its assignation to him, as the case may be.

(5) Any non-vested contingent interest which the debtor has shall vest in the F7 . . . trustee as if an assignation of that interest had been executed by the debtor and intimation thereof made at the date of sequestration.

[F11 (5A) Any non-vested contingent interest vested in the trustee by virtue of subsection (5) above shall, where it remains so vested in the trustee on the date [F12 which is 4 years after the date of sequestration] , be reinvested in the debtor as if an assignation of that interest had been executed by the trustee and intimation thereof made at that date.]

(6) Any person claiming a right to any estate claimed by the F7 . . . trustee may apply to the [F13 sheriff] for the estate to be excluded from such vesting, a copy of the application being served on the F7 . . . trustee; and the [F13 sheriff] shall grant the application if [F14 he] is satisfied that the estate should not be so vested.

(7) Where any successor of a deceased debtor whose estate has been sequestrated has made up title to, or is in possession of, any part of that estate, the [F15 sheriff] may, on the application of the F7 . . . trustee, order the successor to convey such estate to him.

(8) In subsection (1) above [F16 , subject to section 31A of this Act,] the “whole estate of the debtor” means [F17 , subject to subsection (9) below [F18 [F19 and to [F20 sections 71(10B), 78(3B) and 89(2)] of the Social Security Administration Act 1992]],] his whole estate at the date of sequestration, wherever situated, including—

(a) any income or estate vesting in the debtor on that date;

[F21 (aa) any property of the debtor, title to which has not been completed by another person deriving right from the debtor;] and

(b) the capacity to exercise and to take proceedings for exercising, all such powers in, over, or in respect of any property as might have been exercised by the debtor for his own benefit as at, or on, the date of sequestration or might be exercised on a relevant date (within the meaning of section 32(10) of this Act).

[F22 (9) Subject to subsection (10) below, the “whole estate of the debtor” does not include any interest of the debtor as tenant under any of the following tenancies—

(a) a tenancy which is an assured tenancy within the meaning of Part II of the M1 Housing (Scotland) Act 1988, or

(b) a protected tenancy within the meaning of the M2 Rent (Scotland) Act 1984 in respect of which, by virtue of any provision of Part VIII of that Act, no premium can lawfully be required as a condition of the assignation, or

[F23 (c) a Scottish secure tenancy within the meaning of the Housing (Scotland) Act 2001 (asp 10).]

(10) On the date on which the F7 . . . trustee serves notice to that effect on the debtor, the interest of the debtor as tenant under any of the tenancies referred to in subsection (9) above shall form part of his estate and vest in the F7 . . . trustee as if it had vested in him under section 32(6) of this Act.]

Textual Amendments

F1 Words in s. 31(1) inserted (6.4.1997) by 1995 c. 26, s. 122, Sch. 3 para. 13; S.I. 1997/664, art. 2(3), Sch. Pt. II

F2 Words in s. 31(1) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 5 para. 13(2)(a) (with s. 223); S.S.I. 2008/115, art. 3(2)(3), Sch. 1 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F3 Words in s. 31(1) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 5 para. 13(2)(b) (with s. 223); S.S.I. 2008/115, art. 3(2)(3), Sch. 1 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F4 Words in s. 31(1) repealed (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 6 Pt. 1 (with s. 223); S.S.I. 2008/115, art. 3(2)(3), Sch. 2 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F5 S. 31(1)(a)(b) and preceding word repealed (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 6 Pt. 1 (with s. 223); S.S.I. 2008/115, art. 3(2)(3), Sch. 2 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F6 S. 31(1A)(1B) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), {ss. 17 (1)(a)}, 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F7 Words in s. 31(2)-(7)(10) repealed (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 6 Pt. 1 (with s. 223); S.S.I. 2008/115, art. 3(2)(3), Sch. 2 (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F8 Words in s. 31(2) substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 30(2) (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F9 Words in s. 31(2) repealed (22.4.2009) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 226, 227(3), Sch. 6 Pt. 1 (with s. 223); S.S.I. 2009/67, art. 3(2)(3), Sch. 2

F10 Words in s. 31(4) substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 30(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F11 S. 31(5A) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 29, 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F12 Words in s. 31(5A) substituted (1.4.2015) by Bankruptcy and Debt Advice (Scotland) Act 2014 (asp 11), ss. 16(1), 57(2); S.S.I. 2014/261, art. 3 (with arts. 4-7, 12) (as amended by S.S.I. 2015/54, art. 2)

F13 Words in s. 31(6) substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 30(4)(a) (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F14 Word in s. 31(6) substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 30(4)(b) (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F15 Word in s. 31(7) substituted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 36, 227(3), Sch. 1 para. 30(5) (with s. 223); S.S.I. 2008/115, art. 3(1)(i) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F16 Words in s. 31(8) inserted (8.9.2003) by The Insolvency (Scotland) Regulations 2003 (S.I. 2003/2109), reg. 11

F17 Words inserted by Housing Act 1988 (c. 50, SIF 75:1), s. 118(1)

F18 S. 31(8): by 1997 c. 27, s. 33(2), Sch. 4 (with ss. 1, 2, 28); S.I. 1997/2085, art. 2(2) it is provided (6.10.1997) that the words “and to section 89(2) of the Social Security Administration Act 1992” are repealed

F19 Words in s. 31(8) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para.69.

F20 Words in s. 31(8) substituted (7.10.1996) by 1995, c. 18, s. 41(4), Sch. 2 para. 8; S.I. 1996/2208, art. 2(b)

F21 S. 31(8)(aa) inserted (1.4.2008.) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), {ss. 17 (1)(b)}, 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10 (as amended (with effect from 31.1.2011) by S.S.I. 2011/31, art. 5))

F22 S. 31(9)(10) added by Housing Act 1988 (c. 50, SIF 75:1), s. 118(2)

F23 S. 31(9)(c) substituted (30.9.2002) by 2001 asp 10, s. 112, Sch. 10 para. 10; S.S.I. 2002/321, art. 2, Sch. (subject to arts. 3-5)

Modifications etc. (not altering text)

C1 S. 31(8) excluded by Social Security Act 1989 (c.24, SIF 113:1), s. 22, Sch. 4 Pt. II para. 8(2)

C2 S. 31(8) restricted (1.7.1992) by Social Security Administration Act 1992 (c. 5), s. 89(2) (with s. 93(1)).

Marginal Citations

M1 1988 c.43

M2 1984 c.58