In times of economic uncertainty it is a sad reality that the numbers of individual bankruptcies tend to increase, often dramatically. It is therefore important for trustees in bankruptcy and other insolvency practitioners, lenders and other secured and unsecured creditors to know what their options are in relation to realising any assets to recover sums owing following the bankruptcy of a borrower or trade debtor, or to get the right advice on how to do so.
This can often, at least on the face of it, appear difficult where the bankrupt’s only real asset is the equity they hold in the share of a beneficially jointly owned home. Even more so, where there may be children living at the jointly owned home.
However, there are very often ways to achieve this by way of a forced (or voluntary) sale to realise that share under s335A of the Insolvency Act 1986, or some other arrangement made under the threat of such action, including possible agreement with the bankrupt’s partner or spouse.
Michael Pidge of Druces LLP Solicitors recently acted for trustees in bankruptcy in this situation to realise a bankrupt’s substantial share of the sale of a jointly owned home for the benefit of creditors. The proceedings were handled effectively but sensitively to ensure that time was allowed for the residents to find alternative accommodation.
If you would like to know more about this, including the time limits involved, or discuss how we may be able to help in this type of situation, please contact Michael Pidge.
This briefing was posted on 13 March 2018