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Section 211 of Insolvency Act CAP 53: Bankruptcy trustee may recover difference in value if transaction is found to be under value

    

(1) Under section 212, the bankruptcy trustee may recover from a party to a transaction with the bankrupt an amount calculated in accordance with the following formula: A = B - C
where—
A is the amount to be calculated;
B is the value that the party received from the bankrupt under the transaction; and
C is the value (if any) that the bankrupt received from the party under the transaction.
(2) In this section and in section 212, "transaction" includes the giving of a guarantee by the bankrupt.
(3) The bankruptcy trustee may recover from the party the amount calculated under subsection (1) if—
(a) the bankrupt entered into the transaction with the party within the two years immediately before the bankruptcy commenced; and (b) either—
(i) the bankrupt was unable to pay the bankrupt's debts when the transaction was entered into; or
(ii) the bankrupt became unable to pay the bankrupt's debts as a result of having entered into the transaction.

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Disclaimer: This document is not to be taken as legal advise.

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