If the buyer becomes bankrupt the benefit of the contract passes to his trustee in bankruptcy who may complete the transaction subject to his right to disclaim onerous contracts1. Where the transaction was to be financed by a mortgage the buyer's mortgage offer will usually be revoked by the bankruptcy. If the trustee does disclaim the contract he will inevitably forfeit the deposit already paid2 and may be subject to an action brought by the seller against the bankrupt's estate to recover loss suffered3. Where one of two or more co-purchasers becomes bankrupt, the bankrupt's equitable interest will pass
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234