Outcomes Are Governed by Statute, Not Discretion
A critical principle of the BIA is that insolvency outcomes are governed by statute. This means that results depend on legal criteria, disclosure, creditor rights, and procedural compliance — not on preference, persuasion, or confidence.
Parliament determines the statute. Courts interpret it. Trustees administer it. No individual participant has authority to bend outcomes to achieve a desired result. Outcomes can change only when facts change, disclosure is incomplete, or legal objections arise.
Key Anchors:
- Parliament sets the law
- Courts interpret disputes
- Trustees apply the statute
Staff must avoid language that implies flexibility or certainty where the law does not permit it.
