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Template:Insolvency set-off capsule

64 bytes added, 11 September
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It has been treated as an authoritative statement of English law since 1972<ref>See {{Casenote|National Westminster Bank Ltd|Halesowen}} and in 1995, {{casenote|Stein|Blake}}</ref> that '''you cannot contract out of [[insolvency set-off]]'''. The [[insolvency set-off]] rules (currently made (British) flesh by the [[Insolvency Act 1986]]) operate automatically and are mandatory upon the commencement of winding-up.
The administrator must take account of all dealings between the creditor and the bankrupt (including future and contingent obligations and unliquidated sums owing). Sums due from one must be set off against the sums due from the other, except that sums due from the bankrupt cannot be included if, when the bankrupt debtor incurred them, the creditor knew of existing formal bankruptcy steps against that debtor:

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