Commentary on Sections Schedule 27 - Minor and consequential amendments Paragraphs 112 to 122 - The Insolvency Act 1986 (c. 45)
1010.The Insolvency Act 1986 contains various provisions protecting creditors from fraud and attempting to ensure a proper pari passu distribution amongst creditors. These provisions allow certain transactions, including transactions involving close family and other associated persons, entered into by a debtor or company prior to the onset of insolvency proceedings to be undone or adjusted.
1011.Paragraphs 112 to 121 make consequential amendments to the 1986 Act to ensure that where a person is adjudged bankrupt, the person’s civil partner is to have the same rights and liabilities as the spouse of a bankrupt has at present. Amendments are made to certain anti-abuse and avoidance provisions in the Act to ensure that transactions involving civil partners entered into prior to the onset of insolvency proceedings are treated in the same way as transactions involving spouses.
1012.Paragraph 122 amends the definition of “associate” in the 1986 Act so that the relevant anti-avoidance provisions cover a civil partner in the same way as a spouse.