The Insolvency (Amendment) Rules (Northern Ireland) 2006

Substitution of Rule 6.229

91.  For Rule 6.229 there shall be substituted—

“Bankrupt’s Home — Notification of property falling within Article 256A

6.229.— (1) Where it appears to a trustee that Article 256A(1) applies, the trustee shall give notice in Form 6.86 as soon as reasonably practicable to—

• [Form 6.86]

  (a)

  the bankrupt;

  (b)

  the bankrupt’s spouse or civil partner (in a case falling within Article 256A(1)(b)); and

  (c)

  a former spouse or former civil partner of the bankrupt (in a case falling within Article 256A(1)(c)).

(2) A notice under paragraph (1) shall contain—

(a) the name of the bankrupt;

(b) the address of the dwelling-house; and

(c) if the dwelling-house is registered land, the folio number.

(3) A trustee shall not give notice under paragraph (1) any later than 14 days before the expiry of the three year period under Article 256A(2) or 256A(5).

• [E.R. 6.237]

Application in respect of the vesting of an interest in a dwelling-house (registered land)

6.229A.— (1) Paragraph (2) shall apply where—

(a) property comprised in the bankrupt’s estate consists of an interest in a dwelling-house which at the date of bankruptcy was the sole or principal residence of—

(i) the bankrupt;

(ii) the bankrupt’s spouse or civil partner; or

(iii) a former spouse or former civil partner of the bankrupt; and

(b) title to the dwelling-house is registered; and

(c) an entry has been made, or entries have been made, in the individual register or registers in which title to the dwelling-house is registered relating to the bankrupt’s bankruptcy or the individual register or registers has or have been altered to reflect the vesting of the bankrupt’s interest in a trustee in bankruptcy.

(2) Where an interest of a kind mentioned in paragraph (1) ceases to be comprised in the bankrupt’s estate and vests in the bankrupt under either Article 256A(2) or 256A(4) of the Order, or under Article 17(7) of the Insolvency (Northern Ireland) Order 2005, the trustee shall, within 7 days of the date of the vesting, make such application or applications to the Registrar of Titles as shall be necessary to show on the appropriate register that the interest in the dwelling-house has vested in the bankrupt.

(3) An application under paragraph (2) shall be made in accordance with the Land Registration Act (Northern Ireland) 1970(1) and shall be accompanied by—

(a) evidence of the trustee’s appointment (where not previously provided to the Registrar of Titles); and

(b) a certificate from the trustee stating that the interest has vested in the bankrupt under Article 256A(2) or 256A(4) of the Order or Article 17(7) of the Insolvency (Northern Ireland) Order 2005 (whichever is appropriate).

(4) As soon as reasonably practicable after making an application under paragraph (2) of this Rule, the trustee shall notify the bankrupt and if the dwelling-house was the sole or principal residence of his spouse or former spouse or civil partner or former civil partner, such person, that the application has been made.

(5) The trustee shall notify every person who (to his knowledge) either claims an interest in the dwelling-house, or is under any liability in respect of the dwelling-house that an application has been made.

• [E.R. 6.237A]

Vesting of bankrupt’s interest (unregistered land)

6.229B.— (1) Where an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of—

(a) the bankrupt;

(b) the bankrupt’s spouse or civil partner; or

(c) a former spouse or former civil partner of the bankrupt,

ceases to be comprised in the bankrupt’s estate and vests in the bankrupt under either Article 256A(2) or 256A(4) of the Order or Article 17(7) of the Insolvency (Northern Ireland) Order 2005 and title to the dwelling-house is unregistered land, the trustee shall issue the bankrupt with a certificate as to the vesting in Form 6.87 as soon as reasonably practicable.

• [Form 6.87]

(2) A certificate issued under paragraph (1) shall be conclusive proof that the interest mentioned in paragraph (1) has vested in the bankrupt.

(3) The trustee shall lodge in the registry of deeds a certificate as required by section 3(4) of the Registration of Deeds Act (Northern Ireland) 1970.

(4) As soon as reasonably practicable after issuing the certificate under paragraph (1) the trustee shall, if the dwelling-house was the sole or principal residence of the bankrupt’s spouse or former spouse or civil partner or former civil partner, notify such person, that the certificate has been issued.

(5) The trustee shall notify every person who (to his knowledge) either claims an interest in the dwelling-house, or is under any liability in respect of the dwelling-house that a certificate has been issued.

• [E.R. 6.237B]

6.229C.   The court may substitute for the period of three years mentioned in Article 256A(2) such longer period as the court thinks just and reasonable in all the circumstances of the case.

• [E.R. 6.237C]

Vesting of bankrupt’s estate — substituted period

6.229D.   For the purposes of Article 256A(2) for the period of three years set out therein there shall be substituted, where the trustee in bankruptcy has sent notice to the bankrupt that he considers—

(a) the continued vesting of the property in the bankrupt’s estate to be of no benefit to creditors; or

(b) the re-vesting to the bankrupt will facilitate a more efficient administration of the bankrupt’s estate,

the period of one month from the date of that notice.

• [E.R. 6.237CA]

Charging Order

6.229E.— (1) This Rule applies where the trustee applies to the court under Article 286 for an order imposing a charge on property consisting of an interest in a dwelling-house.

(2) The respondents to the application shall be—

(a) any spouse or former spouse or civil partner or former civil partner of the bankrupt having or claiming to have an interest in the property;

• [Form 6.82]

  (b)

  any other person appearing to have an interest in the property; and

  (c)

  such other persons as the court may direct.

(3) The trustee shall make a report to the court, containing the following particulars—

(a) the extent of the bankrupt’s interest in the property which is the subject of the application;

(b) the amount which, at the date of the application, remains owing to unsecured creditors of the bankrupt; and

(c) an estimate of the cost of realising the interest.

(4) The terms of the charge to be imposed shall be agreed between the trustee and the bankrupt or, failing agreement, shall be settled by the court.

(5) The rate of interest applicable under Article 286(2) is the rate applicable to a money judgement of the High Court on the day on which the charge is imposed, and the rate so applicable shall be stated in the court’s order imposing the charge.

(6) The court’s order shall also—

(a) describe the property to be charged;

(b) state whether the title to the property is registered and, if it is, specify the folio number;

(c) set out the extent of the bankrupt’s interest in the property which has vested in the trustee;

(d) indicate, by reference to any, or the total, amount which is payable otherwise than to the bankrupt out of the estate and of interest on that amount, how the amount of the charge to be imposed is to be ascertained;

(e) set out the conditions (if any) imposed by the court under Article 286(4); and

(f) identify the date any property charged under Article 286 shall cease to be comprised in the bankrupt’s estate and shall, subject to the charge (and any prior charge), vest in the bankrupt.

(7) Unless the court is of the opinion that a different date is appropriate, the date referred to in paragraph (6)(f) shall be that of the registration of the order in the Land Registry or the Registry of Deeds, as the case may be.

(8) Where the court order is capable of giving rise to an application or applications under the Land Registration Act (Northern Ireland) 1970, the trustee shall, as soon as reasonably practicable after the making of the court order or at the appropriate time, make the appropriate application or applications to the Registrar of Titles.

(9) In paragraph (8) an “appropriate application” is an application under the Land Registration Act (Northern Ireland) 1970 for an entry in the register in respect of the charge imposed by the order; and such application under that Act as shall be necessary to have the registration of title in respect of the dwelling-house noted that the interest has vested in the bankrupt.

(10) In determining the value of the bankrupt’s interest for the purposes of paragraph (6)(c), the court shall disregard that part of the value of the property in which the bankrupt’s interest subsists which is equal to the value of—

(a) any loans secured by mortgage or other charge against the property;

(b) any other third party interest; and

(c) the reasonable costs of sale.

• [E.R. 6.237D]

Interpretation

6.229F.— (1) In Rules 6.229 and 6.229A, “registered land” means any land title to which has been registered in accordance with the provisions of Part III of the Land Registration Act (Northern Ireland) 1970.

(2) In Rule 6.229A, “individual register” has the same meaning as in the Land Registration Rules 2003.

• [E.R. 6.237E]”

(1)

1970 c. 18 (N.I.)