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LANDLORD'S RIGHT OF DISTRESS
The Landlord's right to distrain for arrears of rent is not lost on the tenant's bankruptcy, but1) Distress can only be levied after commencement of bankruptcy for up to six month's rent due prior to adjudication and is not available for rent payable after date of distress;
2) If distress is levied within three months preceding date of receiving order, proceeds are subject to a first charge in favour of preferential creditors; if the landlord suffers loss as a result he acquires the same rights of priority as the preferential creditors who are paid;
3) He can distrain for rent due after adjudication if trustee remains in possession and does not disclaim lease; if tenant's goods have been seized in execution of a judgment, landlord can claim up to one year's arrears out of proceeds, or six months' arrears if claim made after commencement of bankruptcy.Unless the landlord has distrained he has no priority over the creditors.
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