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Bankruptcy - postponement of sale |
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The law on postponing of the sale of the matrimonial home (on bankruptcy)
is likely to be affected by HRA 1998.
The current law was set out in Re Citro [1990], which laid down a narrow
definition of the type of exceptional circumstance that would justify any
postponement of sale by a trustee in bankruptcy.
In simple terms, a bankrupt
creditor's interests will outweigh all other interests in virtually all cases.
However, that proposition was challenged recently in a case in which a bankrupt
resisted an application for possession, on the basis that his former partner had
a beneficial interest in the property, and that the sale would cause disruption to
the education of his son, who had special needs. However, the bankrupt's
former partner was not a party to the proceedings, and the evidence about the
special needs of his son was decidedly thin. On the facts, the judge felt there
was insufficient reason to postpone the sale, but, in doing so, noted that HRA
1998 (which does, of course, provide a right to respect for private and family
life) was likely to require a shift in emphasis away from the present high priority
given to creditors by Re Citro [1990]. Accordingly, do consider the Human Rights
possibilities when advising in such a case. See note on Romano Borca [2004]
EWHC 2170 (Ch), noted in [2005] SJ 829.
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September 2005 |