Disclaimer of onerous property-bankruptcy, Financial Accounting

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DISCLAIMER OF ONEROUS PROPERTY

1) Effect of disclaimer
The trustee may disclaim onerous property consisting of: Land burdened with onerous covenants; Stocks and shares;

2) Time for disclaimer
The trustee may disclaim in writing at any time within twelve months of his appointment, or of becoming aware of the property, or such extended period as the court may allow.

3) Disclaimer of leases
In principle where the bankrupt is a lessee the lease cannot be disclaimed without leave of the court; but such leave is not required in many cases.

4) Rights arising on disclaimer

Any person interested in property disclaimed may apply to the court for an order vesting the property in himself; but the court will not make a vesting order in respect of a lease unless the lease is taken subject to the same liabilities and obligations as bound the bankrupt.

Any person injured by the disclaimer may prove in the bankruptcy to the extent of his loss.


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