Right to Buy & Bankruptcy

We acted for an insolvency practitioner who had been appointed as the trustee in bankruptcy of a bankruptcy estate. We were instructed to issue proceedings for possession and sale of a property registered in the joint names of the bankrupt and his wife. The application was contested by the bankrupt and the bankrupt’s wife on the basis that the bankrupt did not have an interest in the property. The defence was based upon the fact that the property had been purchased further to a ‘right to buy’ scheme and that the bankrupt had not contributed to the same. This defence was rejected at a final hearing and an order for possession and sale of the property was obtained with a costs order against the bankrupt’s wife to be paid from her share of the equity in the property.

The order was subsequently enforced and the property sold in order to realise our client’s interest in the property.