The Encumbered Estates' Court was established by an act of the British Parliament in 1849, the Incumbered Estates (Ireland) Act 1849, to facilitate the sale of Irish estates whose owners, because of the Great Famine, were unable to meet their obligations. It was given authority to sell estates on application from either the owner or an encumbrancer and, after the sale, distribute the proceeds among the creditors, granting clear title to the new owners.