The Bankrupt's Assets

 

The bankrupt's assets automatically vest in the trustee in bankruptcy. The bankrupt's assets include all their property, excluding their tools of the trade, clothing and furniture, which the bankrupt may retain. If, however, the bankrupt has property which they are allowed to retain, of particularly high value, the trustee in bankruptcy has the right to sell this and replace it with something cheaper.

The bankrupt is entitled to retain their income, though the trustee in bankruptcy may make an income payment's order if the bankrupt's income exceeds a sum sufficient to meet the reasonable needs of the bankrupt and his family. An income payments order can last up to three years, which means that the bankrupt may have to continue to make payments even after they have been discharged from bankruptcy.

If the bankrupt owns their own home then the interest in that passes to the trustee in bankruptcy. This is often more difficult for the trustee in bankruptcy to realise, as there are sometimes other people, usually the spouse, who have an interest in the home. After one year of bankruptcy the needs of the creditors outweigh the needs of others, except in exceptional circumstances, and the trustee in bankruptcy will usually be able to get a court order to sell the home.

If you would like to obtain legal advice on the distribution of a bankrupt's assets in personal insolvency, Caven can put you in touch with a local specialist Personal Insolvency Solicitor free of charge. So, if you have any questions or would like our help in finding local Personal Insolvency Solicitors please call us on 08001 221 2299 or complete the web-form above.

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