The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
When the bankrupt's estate vests in the trustee in bankruptcy (trustee) immediately following the trustee's appointment, the bankrupt's property (including their place of residence) will usually be the most valuable asset in the bankruptcy estate. When appointed, the trustee's main aim will be to secure and realise the value of the bankrupt's interest in any property for the benefit of the bankruptcy creditors. Achieving this will involve several challenges which, depending on the specific circumstances of the case, could include:
ascertaining whether the bankrupt has an interest in the property, or has disposed of any interest in the property
ascertaining whether any other parties (including the bankrupt's spouse or civil partner) have an interest in the property
ascertaining the extent of each party's respective interest
ascertaining whether any adjustments may need to be made out of the net sale proceeds
establishing whether it is appropriate to apply to court and, if so, the timing of any application
dealing with any other issues which may arise, such as special circumstances of the bankrupt's family, or divorce proceedings
For further reading on the initial steps that a trustee should take on appointment, see Practice Notes:
The immediate effects of a bankruptcy order on the bankrupt
Protecting a trustee in bankruptcy's interest in property following their appointment
This Practice Note addresses whether the trustee can apply
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