When an individual is made bankrupt, the Official Receiver deals with the case initially and the case will either be retained by the Official Receiver or an Insolvency Practitioner in private practice will be appointed as Trustee in Bankruptcy to the estate.
The primary duties of the Official Receiver and Trustee in Bankruptcy are to realise assets in the bankruptcy estate for the benefit of the bankrupt’s creditors. In addition, the Official Receiver will prepare a report on the conduct of the bankrupt in the period immediately prior to the Bankruptcy Order in order to establish whether or not the bankrupt is considered to be ‘culpable’ and if so, they may seek a ‘Bankruptcy Restriction Order’ against the bankrupt.
Often in such situations the bankrupts will feel that they have nobody representing their interests or the interests of their family. There can be situations where the Trustee in Bankruptcy is seeking to realise the equity in domestic property, but in certain circumstances, where it can be established that the loans secured against the property are wholly attributable to the bankrupt, the spouse may be able to claim more of the equity in the property under the ‘doctrine of equitable exoneration'.
We are able to undertake an impartial review of the situation and advise on the position.
There are other situations where it may be appropriate for an individual to seek to enter into an Individual Voluntary Arrangement despite having already been made bankrupt.
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