C1PART IXBANKRUPTCY

Annotations:
Modifications etc. (not altering text)

CHAPTER VEFFECT OF BANKRUPTCY ON CERTAIN RIGHTS, TRANSACTIONS, ETC.

Rights of occupation

Rights of occupation, etc., of bankrupt's spouseF6309

1

Nothing occurring in the initial period of the bankruptcy (that is to say, the period beginning with the day of the presentation of the petition for the bankruptcy order and ending with the vesting of the bankrupt's estate in a trustee) is to be taken as having given rise to anyF1F2 home rights under the Family Homes and Domestic Violence (Northern Ireland) Order 1998 in relation to a dwelling house comprised in the bankrupt's estate.

2

WhereF2 a spouse's or civil partner's home rightsF1 under the Order of 1998 are a charge on the estate or interest of the other spouseF2 or civil partner, or of trustees for the other spouseF2 or civil partner, and the other spouseF2 or civil partner is adjudged bankrupt—

a

the charge continues to subsist notwithstanding the bankruptcy and, subject to the provisions of that Order, binds the trustee of the bankrupt's estate and persons deriving title under that trustee, and

b

any application for an order underF1 Article 11 of that Order shall be made to the High Court.

3

Notwithstanding any provision of the Partition Act 1868F3, where a person and his spouse or former spouseF2 or civil partner or former civil partner have a legal or equitable estate in a dwelling house vested in them jointly or as tenants in common and that person is adjudged bankrupt, in a suit for partition maintained by the trustee of the bankrupt's estate the High Court may make such order as it thinks fit.

4

On an application such as is mentioned in paragraph (2) or in a suit such as is mentioned in paragraph (3) the High Court shall make such order under paragraph (3) orF1 Article 11 of the Order of 1998 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 spouseF6, so far as contributing to the bankruptcy,

c

the needs and financial resources of the spouse or former spouseF6,

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 or such a suit is maintained after the expiration of one year from the first vesting under Chapter IV of the bankrupt's estate in a trustee, the High Court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt's creditors outweigh all other considerations.

Rights of occupation of bankrupt310

1

This Article applies where—

a

a person who is entitled to occupy a dwelling house by virtue of a beneficial estate or interest is adjudged bankrupt, and

b

any persons under the age of 18 with whom that person had at some time occupied that dwelling house had their home with that person at the time when the bankruptcy petition was presented and at the commencement of the bankruptcy.

2

Whether or not the bankrupt'sF4 spouse or civil partner (if any) has home rightsF5 under the Family Homes and Domestic Violence (Northern Ireland) Order 1998

a

the bankrupt has the following rights as against the trustee of his estate—

i

if in occupation, a right not to be evicted or excluded from the dwelling house or any part of it, except with the leave of the High Court,

ii

if not in occupation, a right with the leave of the Court to enter into and occupy the dwelling house, and

b

the bankrupt's rights are a charge, having the like priority as an equitable interest created immediately before the commencement of the bankruptcy, on so much of his estate or interest in the dwelling house as vests in the trustee.

F53

The Order of 1998 has effect, with the necessary modifications, as if—

a

the rights conferred by sub-paragraph (a) of paragraph (2) wereF4 home rights under that Order,

b

any application for leave such as is mentioned in that sub-paragraph were an application for an order under Article 11 of that Order, and

c

any charge under sub-paragraph (b) of that paragraph on the estate or interest of the trustee were a charge under that Order on the estate or interest of a spouseF4 or civil partner.

4

Any application for leave such as is mentioned in paragraph (2)(a) or otherwise by virtue of this Article for an order underF5 Article 11 of the Order of 1998 shall be made to the High Court.

5

On such an application the High Court shall make such order underF5 Article 11 of the Order of 1998 as it thinks just and reasonable having regard to the interests of the creditors, to the bankrupt's financial resources, to the needs of the children and to all the circumstances of the case other than the needs of the bankrupt.

6

Where such an application is made after the expiration of one year from the first vesting (under Chapter IV) of the bankrupt's estate in a trustee, the High Court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt's creditors outweigh all other considerations.

Payments in respect of premises occupied by bankrupt311

Where any premises comprised in a bankrupt's estate are occupied by him (whether by virtue of Article 310 or otherwise) on condition that he makes payments towards satisfying any liability arising under a mortgage of the premises or otherwise towards the outgoings of the premises, the bankrupt does not, by virtue of those payments, acquire any interest in the premises.