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Section 306 of Insolvency Act CAP 53: Power of the Court to make interim order

    

(1) On the hearing of an application made under section 304, the Court may make an interim order if satisfied—
(a) that the debtor intends to make a proposal under this Division;
(b) that on the day of the making of the application the debtor was an undischarged bankrupt or was able to make an application for the debtor's own bankruptcy;
(c) that no previous application has been made by the debtor for an interim order during the twelve months immediately preceding that day; and
(d) that the supervisor designated under the debtor's proposal is willing to act in relation to the proposal.
(2) The Court shall make an interim order if satisfied that it would facilitate the consideration and implementation of the debtor's proposal.
(3) If the debtor is an undischarged bankrupt, the interim order may contain provisions as to the conduct of the bankruptcy, and the administration of the bankrupt's estate, during the period for which the order is to have effect.
(4) However, an interim order may, in relation to a debtor who is an undischarged bankrupt, include a provision relaxing or removing a requirement of Part III or of this Division, or of the insolvency regulations, only if the Court is satisfied that the inclusion of the provision would be unlikely to result in a significant diminution in, or in the value of, the debtor's estate in relation to the conduct of the bankruptcy.
(5) Except as otherwise provided by this Division, an interim order made on an application made under section 304 ceases to have effect at the end of fourteen days from the date on which the order was made.
(6) On the making of an interim order, the designated supervisor referred to in subsection (1)(d) becomes provisional supervisor.
(7) While an interim order has effect in respect of a debtor—
(a) a bankruptcy application relating to the debtor may not be made or proceeded with;
(b) a landlord or other person to whom rent is payable may exercise a right of forfeiture by peaceable re-entry in relation to premises let to the debtor in respect of a failure by the debtor to comply with a term or condition of the debtor's tenancy of the premises only with the approval of the Court; and
(c) any other proceedings (including execution or other legal process) may be begun or continued, and distress may be levied, against the debtor or the debtor's property only with the approval of the Court.

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

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