BusinessBusiness RecoveryGovernment saves bankrupts’ homes

Government saves bankrupts' homes

The government has acted to limit the threat of seizure of a bankrupt's home to pay off debt's to a period of three years from the date of bankruptcy.

A clause added to the Enterprise Bill – which completed its Commons stages earlier this week and is due to be debated in the House of Lords – applies the time limit for action by the trustees in bankruptcy.

The measure goes against recommendations from bankruptcy experts, who say the plans are ‘ridiculous and unworkeable’.

Junior Trade and Industry minister Melanie Johnson said current provisions leave the family home liable to forced sale indefinitely after the bankrupt has been discharged.

She told MPs: ‘The home will continue to vest on bankruptcy in the bankrupt’s estate, as it does now, but the clause provides a three-year period during which the trustee must act. If he does not do so, the family home reverts to the bankrupt at the end of that period.’

The provision will apply to those in process of being made bankrupt when the Bill becomes law later this year.

Within the time limit, trustees can apply for an order to sell the property, apply for an order for possession or come to an arrangement over the extent of future liability.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5m Emma Smith, Managing Editor