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Home » Bankruptcy » Insolvency Act 1986 - Part IX - Bankruptcy » Chapter V - Effect of Bankruptcy on Certain Rights, Transactions etc » Insolvency Act 1986 - Bankruptcy » 336. Rights of occupation etc. of bankrupt's spouse or civil partner

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336. Rights of occupation etc. of bankrupt's spouse or civil partner

(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 any home rights under Part IV of the Family Law Act 1996 in relation to a dwelling house comprised in the bankrupt's estate.

(2) Where a spouse's or civil partner's home rights under the Act of 1996 are a charge on the estate or interest of the other spouse or civil partner, or of trustees for the other spouse or civil partner, and the other spouse is adjudged bankrupt -

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

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

(3) [repealed]

(4) On such an application as is mentioned in subsection (2) the court shall make such order under section 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 or 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 or 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 IVof 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.

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