The OR say they have no funds to realise my assets which are tied up in a commercial lease and share of a freehold which the freeholder is disputing. The OR say that I will have to fund any claim. I do not have the money obviously because I am bankrupt. Q.1 Can a bankrupt issue a claim in the county Court Q.2 surely the OR should make some effort to realise my assets
The OR will make a judgement about whether or not it is likely to be in the benefit of your creditors to pursue claims of money that a court may or may not decide that you are owed. If they decide not to claim this is becuase ultimately they do not think your creditors will benefit. Given this then you can most certainly make a claim yourself. However the first question is how will you fund such a claim? Also if you do go ahead and the claim is successful remember any funds that you eventually realise will have to be paid into your bankruptcy estate and so would be used to pay your debts before you benefited at all.
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Hi James, i disagree that the bankrupt has the right to bring the claim without the trustees agreement. If the claim vests with the trustee the bankrupt cannot move the claim forward without the trustee assigning (ie selling it to him/her)even if the trustee does not think it viable to take it forward itsself and so if the bankrupt wanted to take it forward they should approach the trustee about buying the right of action.
Here is what the Official Receivers manual says about people taking a claim forward without their permission
31.9.81 Claim issued when official receiver has not agreed
Where the bankrupt issues a claim in a vesting right of action without the permission of the official receiver as trustee, it is likely that the claim will be struck out as an abuse of process [note 18] or as being frivolous or vexatious [note 19].
The issuing of a claim by a bankrupt’s solicitors in circumstances where the solicitor is acting contrary to the advice of the official receiver is likely to be a breach of the standards of professional conduct, for which the official receiver should consider making a complaint to the Solicitors’ Regulation Authority (http://www.sra.org.uk/solicitors/solicitors.page).
Can a bankrupt issue a claim in the County Courts ?
Posted - 28 February 2012 : 16:05:34
