Order and disposition

Updated: Aug 20, 2021

A clause in bankruptcy which establishes the right of a bankrupt’s creditors to take and sell goods to which the bankrupt has no title. This has effect provided that: (1) it is not obvious that the goods belong to someone else; (2) the bankrupt has behaved so as to suggest to an innocent third party giving him credit that the goods are not only in his possession but also his by legal ownership. The true owner can only recover the property if it can be shown that the trustee or creditors concerned were not acting in good faith.

Reference: The Penguin Business Dictionary , 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.