Section 346: Enforcement procedures., Insolvency Act 1986

For the purposes of this section, Her Majesty's Revenue and Customs is to be regarded as having attached a debt due to a person if it has taken action under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by deduction from accounts) as a result of which an amount standing to the credit of an account held by that person is—

subject to arrangements made under paragraph 6(3) of that Schedule, or

the subject of a deduction notice under paragraph 13 of that Schedule.

Subject as follows, where any goods of a person have been taken in execution, then, if before the completion of the execution notice is given to the enforcement officer or other officer charged with the execution that that person has been made bankrupt—

the enforcement officer or other officer shall on request deliver to the official receiver or trustee of the bankrupt's estate the goods and any money seized or recovered in part satisfaction of the execution, but

the costs of the execution are a first charge on the goods or money so delivered and the official receiver or trustee may sell the goods or a sufficient part of them for the purpose of satisfying the charge.

Subject to subsection (6) below, where—

under an execution in respect of a judgment for a sum exceeding such sum as may be prescribed for the purposes of this subsection, the goods of any person are sold or money is paid in order to avoid a sale, and

before the end of the period of 14 days beginning with the day of the sale or payment the enforcement officer or other officer charged with the execution is given notice that a bankruptcy application has been made or a bankruptcy petition has been presented in relation to that person, and

a bankruptcy order is or has been made as a result of that application or on that petition,

the balance of the proceeds of sale or money paid, after deducting the costs of execution, shall (in priority to the claim of the execution creditor) be comprised in the bankrupt's estate.

Accordingly, in the case of an execution in respect of a judgment for a sum exceeding the sum prescribed for the purposes of subsection (3), the enforcement officer or other officer charged with the execution—

shall not dispose of the balance mentioned in subsection (3) at any time within the period of 14 days so mentioned or while proceedings on a bankruptcy application are ongoing or (as the case may be) there is pending a bankruptcy petition of which he has been given notice under that subsection, and

shall pay that balance, where by virtue of that subsection it is comprised, in the bankrupt's estate, to the official receiver or (if there is one) to the trustee or that estate.

For the purposes of this section—

an execution against goods is completed by seizure and sale or by the making of a charging order under section 1 of the Charging Orders Act 1979;

an execution against land is completed by seizure, by the appointment of a receiver or by the making of a charging order under that section;

an attachment of a debt is completed by the receipt of the debt.

The rights conferred by subsections (1) to (3) on the official receiver or the trustee may, to such extent and on such terms as it thinks fit, be set aside by the court in favour of the creditor who has issued the execution or attached the debt.

Nothing in this section entitles the trustee of a bankrupt's estate to claim goods from a person who has acquired them in good faith under a sale by an enforcement officer or other officer charged with an execution.

Neither subsection (2) nor subsection (3) applies in relation to any execution against property which has been acquired by or has devolved upon the bankrupt since the commencement of the bankruptcy, unless, at the time the execution is issued or before it is completed—

the property has been or is claimed for the bankrupt's estate under section 307 (after-acquired property), and

a copy of the notice given under that section has been or is served on the enforcement officer or other officer charged with the execution.

In this section "enforcement officer" means an individual who is authorised to act as an enforcement officer under the Courts Act 2003.

Section 346: Enforcement procedures.

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