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Section 348: Apprenticeships, etc.

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part IX: Bankruptcy — Chapter V: Effect of Bankruptcy on Certain Rights Transacttions, Etc.

This section applies where—

a bankruptcy order is made in respect of an individual to whom another individual was an apprentice or articled clerk at the time when the application for the order was made or (as the case may be) the petition for the order was presented, and
the bankrupt or the apprentice or clerk gives notice to the trustee terminating the apprenticeship or articles.

Subject to subsection (6) below, the indenture of apprenticeship or, as the case may be, the articles of agreement shall be discharged with effect from the commencement of the bankruptcy.

If any money has been paid by or on behalf of the apprentice or clerk to the bankrupt as a fee, the trustee may, on an application made by or on behalf of the apprentice or clerk, pay such sum to the apprentice or clerk as to the trustee thinks reasonable, having regard to—

the amount of the fee,
the proportion of the period in respect of which the fee was paid that has been served by the apprentice or clerk before the commencement of the bankruptcy, and
the other circumstances of the case.

The power of the trustee to make a payment under subsection (3) has priority over his obligation to distribute the bankrupt's estate.

Instead of making a payment under subsection (3), the trustee may, if it appears to him expedient to do so on an application made by or on behalf of the apprentice or clerk, transfer the indenture or articles to a person other than the bankrupt.

Where a transfer is made under subsection (5), subsection (2) has effect only as between the apprentice or clerk and the bankrupt.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.