What happens to the family home if someone is made bankrupt?
The bankrupt’s share of the family, along with all of their other assets, is passed to the Official Receiver (or Trustee in Bankruptcy if one is appointed). The bankrupt will be entitled to enjoy their share of the family home unless they are excluded from it.
When can a bankrupt lose their enjoyment of the family home?
The Official Receiver must wait one year after the date of the bankruptcy order before applying for its sale.
How does the bankrupt lose their enjoyment of the family home?
The Official Receiver makes an application to the court for an order for possession and sale to be granted against the bankrupt, and any other occupants (if appropriate). Any applications will need to demonstrate that substantial assets will be recovered upon any sale of the family home.
Is there a time limit after which the bankrupt gets to keep the family home?
Yes, unless the Official Receiver starts any action seeking an order for sale within three years from the date of the bankruptcy order then the bankrupt’s share in the family home reverts back to the bankrupt (subject to a number of other issues applying).
How can Benchmark Solicitors assist?
Applications seeking possession and sale of the family home usually prompt the bankrupt into seeking an order annulling their bankruptcy. An annulment application based upon the debts and expenses of the bankruptcy having been paid necessitates the Official Receiver or Trustee in Bankruptcy’s fees to have been paid in full. We can assist in applying to annul a bankruptcy or applying to challenge a trustee in bankruptcy’s fees.