Gendrot v Chadwick and another (joint trustees in bankruptcy of Edward Hagan)

Bankruptcy – Transaction at undervalue. A district judge had correctly held, in favour of the trustees in bankruptcy of the husband, that a transfer of his beneficial ownership or interest in two residential properties to his wife amounted to a transaction at an undervalue, within the meaning of s 339 of the Insolvency Act 1986. The Chancery Division, in dismissing the wife's appeal against the district judge's order, held, among other things, that the reassurance she had given to the husband that he could continue to see her and his son on regular occasions had not amounted to valuable consideration, because no right to it had been conferred. Further, there were no exceptional circumstances to justify the sale of the properties being postponed or stayed.

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