Section 39: Second bankruptcy

39. Second bankruptcy (1) Where a bankrupt is, before discharge, adjudicated bankrupt for a second time— (a) subject to subsection (2), any property that is acquired by, or has passed to, the bankrupt since the first bankruptcy, including property acquired or that has passed since the second bankruptcy, shall vest in the Official Receiver in the second bankruptcy; and (b) any surplus in the second bankruptcy is an asset in the estate in the first bankruptcy, and shall be paid to the Official Receiver in the first bankruptcy. (2) The Court may, if it thinks appropriate, order that the following assets or their proceeds shall vest in the Official Receiver in the first bankruptcy— (a) assets in the second bankruptcy that, in the Court’s opinion, were acquired independently of the creditor in the second bankruptcy; and (b) assets in the second bankruptcy that devolved upon the bankrupt. (3) Where the Official Receiver receives notice that a creditor has filed an application for a second bankruptcy, he shall— (a) hold property in his possession that has been acquired by, or passed to, the bankrupt since the first bankruptcy until the application for a second bankruptcy has been dealt with; and (b) transfer the property and its proceeds, less any deduction for the Official Receiver’s costs and expenses, to the Official Receiver in the second bankruptcy where the creditor’s application results in a second bankruptcy, or if the bankrupt is automatically adjudicated bankrupt on his own application. Section B – Duties of bankrupt