38.—(1) Paragraph 21 of Schedule 7 (provisions of the 1989 Order which apply with modifications for the purposes of Article 11 where joint bankruptcy petition is presented by individual members without winding up partnership as unregistered company)(1), is amended as follows.U.K.
(2) In paragraph (2) of modified Article 300A (priority of debts in joint estate), for sub-paragraph (b) substitute—
“(b)the ordinary non-preferential debts;
(ba)the secondary non-preferential debts;
(bb)the tertiary non-preferential debts;”.
(3) In modified Article 300A(4), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (ba)”.
(4) After modified Article 300A(5) insert—
“(5A) Where the joint estate is not sufficient for the payment of the secondary non-preferential debts in accordance with sub-paragraph (ba) of paragraph (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which–
(a)shall be a debt provable by the responsible insolvency practitioner in each such estate, and
(b)shall rank equally with the debts of the member referred to in Article 300B(1)(ba).
(5B) Where the joint estate is not sufficient for the payment of the tertiary non-preferential debts in accordance with paragraph (bb) of paragraph (2), the responsible insolvency practitioner shall aggregate the value of those debts to the extent that they have not been satisfied or are not capable of being satisfied, and that aggregate amount shall be a claim against the separate estate of each member of the partnership against whom an insolvency order has been made which—
(a)shall be a debt provable by the responsible insolvency practitioner in each such estate, and
(b)shall rank as a debt of the member in accordance with Article 300B(1)(bc).”.
(5) In modified Article 300A(6), for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (bb)”.
(6) In modified Article 300A(9), after “(5),” insert “(5A), (5B),”.
(7) In modified Article 300B(1) (priority of debts in separate estate), for paragraph (b) substitute—
“(b)the ordinary non-preferential debts (including any debt referred on in Article 300A(5)(a));
(ba)the secondary non-preferential debts (including any debt referred to in Article 300A(5A)(a));
(bb)the tertiary non-preferential debts;
(bc)the debt referred to in Article 300A(5B)(a);”.
(8) In modified Article 300B(2) for “sub-paragraphs (a), (aa) and (b)” substitute “sub-paragraphs (a) to (ba)”.
(9) In modified Article 300C(3), after “300A(5)(a)” insert “, (5A)(a), (5B)(a),”.
(10) In modified Article 300C(4), for “debts which are neither preferential debts nor postponed debts” substitute “ordinary non-preferential debts, secondary non-preferential debts and tertiary non-preferential debts”.
(11) In modified Article 300C(8)(b), after “300A(5),” insert “(5A), (5B),”.
Commencement Information
I1Art. 38 in force at 19.12.2018, see art. 1(2)
Schedule 7 was amended by S.I. 2014/3486.