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Bankruptcy – Trustee in bankruptcy. The second respondent husband was made bankrupt twice. His wife, the first respondent, made an application under s 375 of the Insolvency Act 1986 (the 1986 Act) to set aside the court's order for sale of the matrimonial home (the property) and for a warrant for possession on the property to be vacated. The court: (i) declared that the second charge on the property be paid first from the interest in the property of the trustee, and (ii) set aside the possession order and the warrant for possession but gave the trustee permission to apply at such time as the values of the property and the legal charges were such as to entitle the trustee to a portion of the proceeds of sale of the property. The trustee appealed. The Chancery Division held that had been correct to find that the wife had been entitled to the equity of exoneration. However, in the circumstances, the court would limit the equity of exoneration to sums loaned in respect of the acquisition of the husband's half share plus interest.
Bankruptcy – Trustee in bankruptcy. The second respondent husband was made bankrupt twice. His wife, the first respondent, made an application under s 375 of the Insolvency Act 1986 (the 1986 Act) to set aside the court's order for sale of the matrimonial home (the property) and for a warrant for possession on the property to be vacated. The court: (i) declared that the second charge on the property be paid first from the interest in the property of the trustee, and (ii) set aside the possession order and the warrant for possession but gave the trustee permission to apply at such time as the values of the property and the legal charges were such as to entitle the trustee to a portion of the proceeds of sale of the property. The trustee appealed. The Chancery Division held that had been correct to find that the wife had been entitled to the equity of exoneration. However, in the circumstances, the court would limit the equity of exoneration to sums loaned in respect of the acquisition of the husband's half share plus interest.
Our call for sufficient resources for the justice system and for the Bar to scrutinise the BSB’s latest consultation
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