|Bankruptcy, disclaimer in|
By becoming the owner of the debtor's goods, a trustee may be saddled with onerous liabilities and contracts re property in the debtor's possession. He is therefore given power to disclaim, i.e. wash his hands of these items. The items include land where there are nerous covenants, unprofitable contracts, stocks and shares, etc. Disclaimer is by notice to the other party normally within twelve months of the trustee becoming aware of the property. The permission of the court is not generally necessary, but may be so where a lease is to be disclaimed. Where property is disclaimed the trustee loses the benefits as well as the obligations. The relevant creditor, if any, may of course prove his debts in the bankruptcy.
|Reference: The Penguin Business Dictionary, 3rd edt.|