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debt_doctor

31.3.185 Considerations for the court when an application for sale of the family home is made
The court, when considering an application for the sale of the bankrupt’s family home, will have regard to URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#18"][COLOR=#0066cc]note 18[/COLOR][/URL:

• The interests of the bankrupt’s creditors (see paragraph 31.3.165);
• The conduct of the spouse, civil partner, former spouse or former civil partner;
• The needs and financial resources of the spouse, civil partner, former spouse or former civil partner;
• The needs of any children; and
• All the circumstances of the case other than the needs of the bankrupt.

After one year has passed the court assumes that, unless there are exceptional circumstances (see paragraph 31.3.186), the interests of the bankrupt’s creditors outweigh all other considerations, and the order will be given. The rights of the creditors are also considered paramount to any matrimonial or civil partnership proceedings home rights URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#19"][COLOR=#0066cc]note 19[/COLOR][/URL URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#20"][COLOR=#0066cc]note 20[/COLOR][/URL (see paragraph 31.3.188), and to the rights of occupation of the bankrupt URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#21"][COLOR=#0066cc]note 21[/COLOR][/URL.

31.3.186 Exceptional circumstances which might prevail over the interests of the creditors
The courts have largely taken a narrow view over what might constitute an exceptional circumstance leading to it taking the view that the rights of the bankrupt and his/her dependents outweigh the rights of the creditors beyond one year (see paragraph 31.3.185).
Family hardship caused by the bankruptcy is not considered an exceptional circumstance. The hardship suffered by a wife and children of a bankrupt when the family home is taken is deemed distressing on the parties concerned, but not exceptional URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#22"][COLOR=#0066cc]note 22[/COLOR][/URL. Exceptional circumstances have been found to be present where there is illness URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#23"][COLOR=#0066cc]note 23[/COLOR][/URL, including mental illness URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#24"][COLOR=#0066cc]note 24[/COLOR][/URL. The need for the bankrupt’s wife to care for her terminally ill husband has also been held by the court to be an exceptional circumstance URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#25"][COLOR=#0066cc]note 25[/COLOR][/URL. Exceptional circumstances were also found where a bankrupt’s spouse is disabled and in poor health. The court may make an order postponing the sale of the property until an ill/disabled person has died or chosen to leave the property URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#26"][COLOR=#0066cc]note 26[/COLOR][/URL. In a case concerning a property in which a disabled child was resident, the court delayed the sale for a period of three years URL="https://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part3/part5/part%205%20notes.htm#27"][COLOR=#0066cc]note 27[/COLOR][/URL.


So, generally speaking, the interests of the creditors are said to outweigh the interests of the family after one year.
DD

Jacko_amz

Thank you debt doctor you've been a great help!

Rrushi_Shqiptar

Just to say we had 2 children under 18yrs old and the Trustee ordered the sale of our house 2 weeks before the 3yr cut off date. They didn't care two hoots about the children, just wanted to obtain the monies from the sale. We were lucky we were allowed; to a point, to instruct our own estate agent and see the sale go through with constant updates to the very rude and disinterested Trustee. They would of sold it for considerable less at auction as well.