Q&As

If a secure tenant of a local housing authority becomes bankrupt, does their tenancy form part of the bankruptcy estate? Does the position alter if the tenancy has been demoted?

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Published on LexisPSL on 03/04/2019

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • If a secure tenant of a local housing authority becomes bankrupt, does their tenancy form part of the bankruptcy estate? Does the position alter if the tenancy has been demoted?

If a secure tenant of a local housing authority becomes bankrupt, does their tenancy form part of the bankruptcy estate? Does the position alter if the tenancy has been demoted?

Section 283 of the Insolvency Act 1986 (IA 1986) exempts certain assets from falling within the bankruptcy estate. There is a specific exclusion for certain kinds of statutory tenancies unless the trustee in bankruptcy serves notice to claim them as is required by IA 1986, s 308A. Those tenancies include:

  1. a tenancy which is an assured tenancy or an assured agricultural occupancy, within the meaning of Part I of the Housing Act 1988 (HA 1988), and the terms of which inhibit an assignment as mentioned in section 127(5) of the Rent Act 1977 (RA 1977)

  2. a protected tenancy, within the meaning of RA 1977 in respect of which, by virtue of any provision of RA 1977, Pt IX, no premium can lawfully be required as a

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