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Insolvency Act 1986

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285 Restriction on proceedings and remedies.E+W

(1)At any time when [F1proceedings on a bankruptcy application are ongoing or] proceedings on a bankruptcy petition are pending or an individual has been [F2made] bankrupt the court may stay any action, execution or other legal process against the property or person of the debtor or, as the case may be, of the bankrupt.

(2)Any court in which proceedings are pending against any individual may, on proof that [F3a bankruptcy application has been made or] a bankruptcy petition has been presented in respect of that individual or that he is an undischarged bankrupt, either stay the proceedings or allow them to continue on such terms as it thinks fit.

(3)After the making of a bankruptcy order no person who is a creditor of the bankrupt in respect of a debt provable in the bankruptcy shall—

(a)have any remedy against the property or person of the bankrupt in respect of that debt, or

(b)before the discharge of the bankrupt, commence any action or other legal proceedings against the bankrupt except with the leave of the court and on such terms as the court may impose.

This is subject to sections 346 (enforcement procedures) and 347 (limited right to distress).

(4)Subject as follows, subsection (3) does not affect the right of a secured creditor of the bankrupt to enforce his security.

(5)Where any goods of an undischarged bankrupt are held by any person by way of pledge, pawn or other security, the official receiver may, after giving notice in writing of his intention to do so, inspect the goods.

Where such a notice has been given to any person, that person is not entitled, without leave of the court, to realise his security unless he has given the trustee of the bankrupt’s estate a reasonable opportunity of inspecting the goods and of exercising the bankrupt’s right of redemption.

(6)References in this section to the property or goods of the bankrupt are to any of his property or goods, whether or not comprised in his estate.

Textual Amendments

Modifications etc. (not altering text)

C1S. 285 applied with modifications by S.I. 1986/1999, art. 3, Sch. 1 Pt. II

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