Sale of flat during bankruptcy

Minkym00

A secured creditor can petition.

40.144 mentions it...
https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part5/part5.htm

But the judge might not allow it and say they would have to rely on their security.

Lacemaker

Hi Minkymoo and OP

The relevant Statute for this, I think is 10.1.(9) - unless I'm mistaken .
Generally, it is problematic for a secured creditor to pursue a Stat Demand, have they said that the debt is secured in the paperwork ?That would usually be deemed best practice by the Court and if not, might possibly be grounds for a Set Aside, but this can be costly, and you must take advice.

If the above is in order and the Statutory Demand is not paid and a Bankruptcy Petition is issued, then the bankruptcy petition itself can be issued based on the debt being secured but ONLY if:
The bankruptcy petition contains a statement by the secured creditor that he is willing in the event of a bankruptcy order being made to give up his security. ( ie a secured creditor can't petition , they must relinquish their charge )
The petition is actually only being issued for the portion of the debt which is not subject to the security.( ie if the amount claimed is disproportionate to the amount of security given,)

We can all give you well meaning , broad advice, however without more in depth knowledge of the situation and sight of the docs it is difficult.

L

L