Where does a debtor live?

A recent case highlighted the need for the Court to determine which was the main residency of a bankrupt.

In the matter of Brake and others b Swift and another [2020] EWCH 1810 (Ch), the trustee did not deal with one of the bankrupts properties within the 3 years, and asked the court to determine if the property was in fact the debtor’s main residence.

The judge deemed that the property was not the main residence of the bankrupt and therefore din not fall into the 3-year rule.

The property and its adjoining land did not revert to the debtor after the 3 years.

This case highlights the fact that a debtor cannot pick and choose where he lives!  It also highlights the fact that trustees need to form an objective assessment at the commencement of the bankruptcy and document the reasons for their conclusions.

For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation and business health check, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.  Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.

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