CHAPTER 33: BANKRUPT’S INTEREST IN THE FAMILY HOME

May 2008

INTRODUCTION

33.1 Introduction

This chapter provides information on dealing with the bankrupt’s interest in a property that is considered by the official receiver to be a family home. It also covers how to calculate the value of the bankrupt’s interest, and how to deal with both pre and post Enterprise Act 2002 cases whether or not the property is jointly or solely owned. Information on how to deal with property that is not a family home can be found in Chapter 31.3 – Dealing with freehold and leashold property.

Part 1 should be applied in all cases where section 283A applies and the bankruptcy petition was presented on or after 1 April 2004. (Details of the provisions of section 283A are given in paragraph 33.7 in Part 1.) The official receiver should also have regard to the guidance in Parts 2 to 8 of this chapter. 

In cases where the bankruptcy order was made on a petition presented before 1 April 2004, refer to Annex 3 where section 283A applies. (Details of the provisions of section 283A are given in paragraph 3 of Annex 3)

If dealing with a property/dwelling-house to which section 283A does not apply, refer to Parts 2 to 8 of this chapter.

33.2 This chapter has been divided into 8 parts as follows:

Part 1 - The Enterprise Act 2002 and the family home (paragraphs 33.3 to 33.38)

Part 2 - Establishing the bankrupt's interest in the property (paragraphs 33.39 to 33.76)

Part 3 - Factors affecting the value of the bankrupt's interest in the property (paragraphs 33.77 to 33.125)

Part 4 – Matrimonial or civil partnership ‘home rights’ and applications to court for eviction (paragraphs 33.126 to 33.135)

Part 5 - Protection of property by the official receiver (paragraphs 33.136 to 33.150)

Part 6 - Dealing with property with minimal/no equity (paragraphs 33.151 to 33.175)

Part 7 - Sale of property (paragraphs 33.176 to 33.184)

Part 8 - Miscellaneous points (paragraphs 33.185 to 33.194)

This chapter has 3 Annexes as follows:

Annex 1 - Details of the solicitors appointed under the Property Conveyancing Scheme

Annex 2 - Charging orders under section 313 of the Insolvency Act 1986

Annex 3 - Enterprise Act 2002 - Transitional provisions on the family home

The following abbreviations are used in this chapter:

EA02 – Enterprise Act 2002

FLA96 – Family Law Act 1996

CPA04 – Civil Partnership Act 2004

[On to Part 1 - The Enterprise Act 2002 and the family home]