ABSTRACT
The insolvent is likely to have a variety of assets which could be realised and the proceeds distributed to the creditors; most of these will become available to the creditors. In the case of a bankruptcy, the bankrupt’s estate will fall into the custody and control of the Official Receiver on the making of the bankruptcy order1 and will subsequently vest by operation of law without further formality in the trustee in bankruptcy when appointed,2 with relation back to the start of the bankruptcy so that the trustee will be deemed to have owned the assets since the date of the bankruptcy order. There is an obligation on the bankrupt3 to deliver up to the trustee possession of any property of which he or she has possession or control and of which the trustee is required to take possession. In contrast, the assets of a company in liquidation do not normally vest in the liquidator; the liquidator takes control of them4 as agent for the company which remains the legal owner, holding the assets on trust for the creditors.5 This distinction means that provision has to be made in a bankruptcy in respect of assets which materialise after the vesting of the estate in the trustee;6 in the case of a liquidation, no such provision is necessary.
