- Damages — Averting and minimising loss and insurance — Payment
This chapter discusses insolvency. Insolvency is significant in the law of assignment in a number of respects. In the first place, individual bankruptcy—although not the insolvency of companies—causes the bankrupt to be divested of his property, which automatically becomes vested in his trustee in bankruptcy upon the latter's appointment. So far as choses in action are concerned, this involves what can be termed a statutory assignment. The onset of insolvency—both individual and corporate—also causes the rules regarding assignments generally to change in certain respects. Thus, with the onset of insolvency: the rules regarding the assignability of present rights enforceable in the future change; the rules of champerty and maintenance change; and the rules of set-off change.