Insolvency Act 1986

336 Rights of occupation etc. of bankrupt’s spouse [F1or civil partner].E+W

(1)Nothing occurring in the initial period of the bankruptcy (that is to say, the period beginning with the day of the [F2making of the bankruptcy application or (as the case may be) the presentation of the bankruptcy petition] and ending with the vesting of the bankrupt’s estate in a trustee) is to be taken as having given rise to any [F3[F4home rights] under Part IV of the Family Law Act 1996] in relation to a dwelling house comprised in the bankrupt’s estate.

(2)Where [F5a spouse’s or civil partner’s home rights][F6under the Act of 1996] are a charge on the estate or interest of the other spouse [F7or civil partner], or of trustees for the other spouse [F7or civil partner], and the other spouse [F7or civil partner] is [F8made] bankrupt—

(a)the charge continues to subsist notwithstanding the bankruptcy and, subject to the provisions of that Act, binds the trustee of the bankrupts’s estate and persons deriving title under the trustee, and

(b)any application for an order [F9under section 33 of that Act] shall be made to the court having jurisdiction in relation to the bankruptcy.

F10(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)On such an application as is mentioned in subsection (2) F11. . . the court shall make such order under [F12section 33 of the Act of 1996]. . . as it thinks just and reasonable having regard to—

(a)the interests of the bankrupt’s creditors,

(b)the conduct of the spouse or former spouse [F13or civil partner or former civil partner], so far as contributing to the bankruptcy,

(c)the needs and financial resources of the spouse or former spouse [F13or civil partner or former civil partner],

(d)the needs of any children, and

(e)all the circumstances of the case other than the needs of the bankrupt.

(5)Where such an application is made after the end of the period of one year beginning with the first vesting under Chapter IV of this Part of the bankrupt’s estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt’s creditors outweigh all other considerations.

Textual Amendments

F1Words in heading to s. 336 inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), ss. 82, 263, Sch. 9 para. 21(5); S.I. 2005/3175, art. 2(1), Sch. 1

F3Words in s. 336(1) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(2) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)

F6Words in s. 336(2) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(3)(a) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)

F9Words in s. 336(2)(b) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(3)(b) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)

F10S. 336(3) repealed (1.1.1997) by 1996 c. 47, s. 25(2), Sch. 4 (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2

F11Words in s. 336(4) repealed (1.1.1997) by 1996 c. 47, s. 25(2), Sch. 4 (with ss. 24(2), 25(4)); S.I. 1996/2974, art. 2

F12Words in s. 336(4) substituted (1.10.1997) by 1996 c. 27, s. 66(1), Sch. 8 Pt. III para. 57(4) (with Sch. 9 paras. 8-10); S.I. 1997/1892, art. 3(1)(b)