The Insolvency (Amendment) Rules 2003

Amendment to Rule 6.237

51.  For Rule 6.237 there is substituted—

“Bankrupt’s Home—Notification of property falling within section 283A

6.237.— (1) Where it appears to a trustee that section 283A(1) applies, the trustee shall give notice in [[FORM 6.83]] Form 6.83 as soon as reasonably practicable to—

(a) the bankrupt;

(b) the bankrupt’s spouse (in a case falling within section 283A(1)(b)); and

(c) a former spouse of the bankrupt (in a case falling within section 283A(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 title 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 section 283A(2) or 283A(5).

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

6.237A.— (1) Paragraph (2) applies 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

(iii) a former spouse of the bankrupt; and

(b) the dwelling-house is registered land; and

(c) an entry has been made, or entries have been made, in the individual register or registers of the dwelling-house 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 section 283A(2) or 283A(4) of the Act, or under section 261(8) of the Enterprise Act 2002(1), the trustee shall, within 7 days of the vesting, make such application or applications to the Chief Land Registrar as shall be necessary to show in the individual register or registers of the dwelling-house that the interest has vested in the bankrupt.

(3) An application under paragraph (2) shall be made in accordance with the Land Registration Act 2002(2) and shall be accompanied by—

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

(b) a certificate from the trustee stating that the interest has vested in the bankrupt under section 283A(2) or 283A(4) of the Act or section 261(8) of the Enterprise Act 2002 (whichever is appropriate).

(4) As soon as reasonably practicable after making an application under paragraph (2), the trustee shall notify the bankrupt and if the dwelling-house was the sole or principal residence of his spouse or former spouse, 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.

Vesting of bankrupt’s interest (unregistered land)

6.237B.— (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

(c) a former spouse of the bankrupt,

ceases to be comprised in the bankrupt’s estate and vests in the bankrupt under either section 283A(2) or 283A(4) of the Act or section 261(8) of the Enterprise Act 2002 and the dwelling-house is unregistered land, the trustee shall issue the bankrupt with a certificate as to the vesting in [[FORM 6.84]] Form 6.84 as soon as reasonably practicable.

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

(3) 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, notify such person, that the application has been made.

(4) 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.

6.237C.   The court may substitute for the period of three years mentioned in section 283A(2) such longer period as the court thinks just and reasonable in all the circumstances of the case.

Charging Order

6.237D.— (1) This Rule applies where the trustee applies to the court under section 313 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 of the bankrupt having or claiming to have an interest in the [[FORM 6.79A]] property;

(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 section 313(2) is the rate specified in section 17 of the Judgments Act 1838(3) 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 title 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 section 3(1) of the Charging Orders Act 1979(4); and

(f) identify the date any property charged under section 313 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 charge in accordance with section 3(2) of the Charging Orders Act 1979.

(8) Where the court order is capable of giving rise to an application or applications under the Land Charges Act 1972(5) or the Land Registration Act 2002, 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 Chief Land Registrar.

(9) In paragraph (8) an “appropriate application” is—

(a) an application under section 6(1)(a) of the Land Charges Act 1972 (application for registration in the register of writs and orders affecting land); or

(b) an application under the Land Registration Act 2002 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 show in the individual register or registers of the dwelling-house that the interest has vested in the bankrupt.

Interpretation

6.237E.— (1) In Rules 6.237 and 6.237A, “registered land” has the same meaning as in section 132(1) of the Land Registration Act 2002.

(2) In Rules 6.237A and 6.237D, “individual register” has the same meaning as in the Land Registration Rules 2003(6).”.

(1)

2002 c. 40.

(2)

2002 c. 9.

(3)

1838 c. 110.

(4)

1979 c. 53.

(5)

1972 c. 61.

(6)

S.I. 2003/1417.