C1PART IXBANKRUPTCY

Annotations:

CHAPTER IVADMINISTRATION BY TRUSTEE

Acquisition, control and realisation of bankrupt's estate

Income payments orders283

1

The High Court mayF1. . . make an order ( “an income payments order”) claiming for the bankrupt's estate so much of the income of the bankrupt during the period for which the order is in force as may be specified in the order.

F21A

An income payments order may be made only on an application instituted—

a

by the trustee, and

b

before the discharge of the bankrupt.

2

The High Court shall not make an income payments order the effect of which would be to reduce the income of the bankruptF3 when taken together with any payments to which paragraph (8) applies below what appears to the Court to be necessary for meeting the reasonable domestic needs of the bankrupt and his family.

3

An income payments order shall, in respect of any payment of income to which it is to apply, either—

a

require the bankrupt to pay the trustee an amount equal to so much of that payment as is claimed by the order, or

b

require the person making the payment to pay so much of it as is so claimed to the trustee, instead of to the bankrupt.

4

Where the High Court makes an income payments order it may, if it thinks fit, discharge or vary any attachment of earnings order that is for the time being in force to secure payments by the bankrupt.

5

Sums received by the trustee under an income payments order form part of the bankrupt's estate.

F46

An income payments order shall specify the period during which it is to have effect; and that period—

a

may end after the discharge of the bankrupt, but

b

may not end after the period of 3 years beginning with the date on which the order is made.

6A

An income payments order may (subject to paragraph (6)(b)) be varied on the application of the trustee or the bankrupt (whether before or after discharge).

6B

Where the Court has made an income payments order in relation to a bankrupt who is a solicitor, nothing in paragraph (6) shall affect the continuance of a condition with respect to income specified in an order made under Article 254(2)(c).

7

For the purposes of this Article the income of the bankrupt comprises every payment in the nature of income which is from time to time made to him or to which he from time to time becomes entitled, including any payment in respect of the carrying on of any business or in respect of any office or employmentF5 andF6 (despite anything in Article 12 or 13 of the Welfare Reform and Pensions (Northern Ireland) Order 1999) any payment under a pension scheme but excluding any scheme to which paragraph (8) applies.

F58

This paragraph applies to—

a

payments by way of guaranteed minimum pension; F7 ...

F8 b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

In this Article, “guaranteed minimum pension” F9has the same meaning as in the Pension Schemes (Northern Ireland) Act 1993.