property in bankrupts reputed ownershipthe


PROPERTY IN BANKRUPT'S REPUTED OWNERSHIP

The trustee may claim property owned by third parties which is in the bankrupt's possession at the commencement of the bankruptcy if:

1.    The property consists of goods or business debts;
2.    In the sole possession, order or disposition of the bankrupt at the commencement of the bankruptcy;
3.    For use in his trade or business;
4.    With the consent of the true owner;
5.    In such circumstances that the debtor was the 'reputed owner' of the goods.

The trustee's claim may be defeated by evidence of a trade custom of possession of such goods without ownership; in view of the prevalence of hire purchase and similar agreements, this clause now seems to have little practical importance.

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Financial Accounting: property in bankrupts reputed ownershipthe
Reference No:- TGS0178823

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