The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
One of the main functions of the trustee in bankruptcy (trustee) is, in accordance with section 305(2) of the Insolvency Act 1986 (IA 1986), to get in, realise and distribute the bankruptcy estate. Early steps must therefore be taken by the trustee to ascertain what assets vest, where they are, how they can be secured, and how they can be realised.IA 1986, s 305(2)
This Practice Note looks at the different kinds of property interest that might vest in the trustee and the principles that govern how the extent of that interest is to be calculated. In particular, it concentrates on the principles as they apply in the context of the bankrupt's principal place of residence. This will typically be the most valuable single asset in the bankruptcy estate and it is one where complications are likely to arise, especially where the bankrupt is or was sharing the property with others. In the context of the matrimonial/family home, there will also be competing interests of the bankrupt's spouse or civil partner and possibly children or other dependants.
This Practice Note does not cover adjustments to the net sale proceeds of the property (equitable accounting and the equity of exoneration). For further reading on these issues, see Practice Notes:
Equitable accounting—how it works in practice
The equity of exoneration and how it applies in practice
For wider reading on what assets vest in the trustee see:
Definition of the bankruptcy estate and which assets vest in the trustee in bankruptcy—overview
What assets vest in the trustee in bankruptcy and what steps does the official receiver or trustee in bankruptcy need to take?
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