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BANKRUPTCY AMENDMENT ACT (NORTHERN IRELAND) 1929 - SECT 12

12. Section three hundred and fourteen of the Act of 1857 and section
fifty-two of the Act of 1872 shall cease to have effect and the following
provisions shall have effect in lieu thereof:

(1) Any settlement of property, not being a settlement made before and in
consideration of marriage, or made in favour of a purchaser or incumbrancer in
good faith and for valuable consideration, or a settlement made on or for the
wife or children of the settlor of property which has accrued to the settlor
after marriage in right of his wife, shall, if the settlor becomes bankrupt
within two years after the date of the settlement, be void against the
assignees or trustee in the bankruptcy, and shall, if the settlor becomes
bankrupt at any subsequent time within ten years after the date of the
settlement, be void against the said assignees or trustees in the bankruptcy,
unless the parties claiming under the settlement can prove that the settlor
was, at the time of making the settlement, able to pay all his debts without
the aid of the property comprised in the settlement, and that the interest of
the settlor in such property passed to the trustee of such settlement on the
execution thereof.

(2) Any covenant or contract made by any person (in this section called "the
settlor") in consideration of his or her marriage, either for the future
payment of money for the benefit of the settlor's wife or husband or children,
or for the future settlement, on or for the settlor's wife or husband or
children, of property, wherein the settlor had not at the date of the marriage
any estate or interest, whether vested or contingent, in possession or
remainder, and not being money or property in right of the settlor's wife or
husband, shall, if the settlor is adjudged bankrupt and the covenant or
contract has not been executed at the date of adjudication of bankruptcy, be
void against the assignees or trustee in the bankruptcy, except so far as it
enables the persons entitled under the covenant or contract to claim for
dividend in the settlor's bankruptcy under or in respect of the covenant or
contract, but any such claim to dividend shall be postponed until all claims
of the other creditors for valuable consideration in money or money's worth
have been satisfied.

(3) Any payment of money (not being payment of premiums on a policy of life
assurance) or any transfer of property made by the settlor in pursuance of
such a covenant or contract as aforesaid shall be void against the assignees
or trustee in the settlor's bankruptcy, unless the persons to whom the payment
or transfer was made prove either

(a)that the payment or transfer was made more than two years before the date
of adjudication of bankruptcy; or

(b)that at the date of the payment or transfer the settlor was able to pay all
his debts without the aid of the money so paid or the property so transferred;
or

(c)that the payment or transfer was made in pursuance of a covenant or
contract to pay or transfer money or property expected to come to the settlor
from or on the death of a particular person named in the covenant or contract,
and was made within three months after the money or property came into the
possession or under the control of the settlor;

(4) "Settlement" shall, for the purposes of this section, include any
conveyance or transfer of property.

S.13 amends s.53 of 1872 c.58. S.14 rep. by 1969 c.30 (NI) s.132 sch.6

© 1929 Crown Copyright

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