How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Max Lowry Your Own Question
Max Lowry
Max Lowry, Advocate
Category: Bankruptcy Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
Type Your Bankruptcy Law Question Here...
Max Lowry is online now

Trustee in bankruptcy

This answer was rated:

If the trustee in bankruptcy has not dealt with the bankrupts principle home within the 3 year time limit what happens?

Does the trustees interest revert back to the bankrupt on the 3 year anniversary date?

Can the trustees prolong the 3 year time limit?

If so on what basis?

Can a bankrupt object to any extension of the 3 year time limit?

Hi, welcome to the site. My name is ***** ***** I will help you with your question. Once the 3rd anniversary of bankruptcy has passed the trustees interest will revert back. The trustee could issue an application to court for possession and sale before the expiry of the third anniversary- this is the only way to stop the property revesting. The trustee will then be entitled to sell the property if hus interest is not purchased.
It is possible to object to the trustees application for possession but you would need to show the court good grounds why the order for possession should not be made. It is possible to do a deal with the trustee at any time before the possession order is made or even after it. However, to do a deal after the making of the order would be more expensive because the trustee would be looking to also recover his costs and expenses for making the application in the first place.
Customer: replied 2 years ago.

Thank you for your response.

If the property is held as tenants in common in unequal shares 60% to non-bankrupt and there is no equity in the property for the trustee to realise with the non-bankrupt entitled to equity of exoneration can they still get an order for sale?

Is this an defence to any application for an order for sale?

Yes, it's is very possible that this could be a good defence. However, the trustee will require evidence to substantiate this and sometimes it can take time for such evidence to be gathered and considered. If the 3 years is almost up the trustee will not risk losing the property in case he does have an interest in it and will make the application. If it turns out he simply doesn't have any interest then he cannot enforce the possession and sale order.
Max Lowry and other Bankruptcy Law Specialists are ready to help you