LAW

Will Break the answer in two parts..

First what is Disclaimer and then wat is Onerous Property..

1. What is a disclaimer?

A disclaimer is a formal notice on a prescribed form issued by a liquidator or trustee in respect of ’onerous’ property. It has the effect of removing from the liquidator or trustee all responsibility for the property disclaimed and discharges all personal liability in respect of it.

When acting as liquidator or trustee the official receiver should disclaim onerous property as soon as possible unless there is doubt as to whether there is any equity or realisable value. For example, it may be possible to disclaim in a company case where there is a commercial property, although it will be necessary to ascertain that a lease is of no value before issuing a disclaimer. In practice, most disclaimers issued in bankruptcies are in respect of domestic tenancies, but a disclaimer may be used against a variety of onerous property that cannot be disposed of by any other means.

A disclaimer can be issued at any time in the proceedings once the official receiver is liquidator or trustee.

2. What does ‘onerous property’ mean?

Careful regard must be made to the definition of onerous property. The Insolvency Act 1986 defines onerous property as:

any unprofitable contract and
any property, forming part of the estate, which is unsaleable, or not readily saleable or which may give rise to a liability to pay money or perform any other onerous act.