Bankruptcy Case

There has for some time been a conflict between the courts exercising matrimonial and bankruptcy jurisdiction respectively, over the distribution of assets of the marriage when one spouse becomes bankrupt shortly after the matrimonial settlement. The ruling in Hill v Haines [2007] EWHC 1012 (Ch) handed down on 3 May 2007, now allows for property and assets awarded as part of a divorce settlement to be recovered for the benefit of creditors in any following bankruptcy proceedings against the non bankrupt spouse. For a summary of the case from Clarke Willmott, the solicitors representing the trustees in bankruptcy, see July [2007] Fam Law.