What impact does bankruptcy have on a lump sum order obligation, asks Edward Heaton
In McRoberts v McRoberts [2012] EWHC 2966 (Ch), [2012] All ER (D) 12 (Nov), Hildyard J, in the Chancery Division, considered the impact of bankruptcy on a husband’s obligation to meet a lump sum order.
Background
The parties entered into a financial agreement in 2003, the terms of which were recorded in a consent order dated 1 April 2003. Among other things, the consent order provided for the husband, who was the applicant in the proceedings before Hildyard J, to make a lump sum payment of £450,000 to the wife, who was the respondent. The lump sum was stated to be payable by instalments, the final instalment to be paid by 31 March 2009. Interest was to accrue on any late payments and the entirety of the remaining balance of the lump sum outstanding was to fall due in the event of any payment becoming more than 14 days overdue.
The husband failed to make the payments that
.tmb-mov69x69.jpg?sfvrsn=e3c4b2f1_1)
