Q. I am buying a house owned jointly by a husband and wife where the husband has just been declared bankrupt. Are they still entitled to sell the property?
A. They are. On bankruptcy, the husband's entitlement to share in the profits of the sale will pass automatically to his trustee in bankruptcy ("TIB"); i.e. the Official Receiver or insolvency practitioner appointed to sell his assets and share the money out amongst his creditors.
However, legally, the husband will continue to hold the property jointly with his wife and therefore both the husband and wife need to sign the paperwork to sell the house to you (it would be a matter for the TIB to then pursue the husband his share of the sale proceeds).
However, in order to ensure that there is no future dispute about the sale, your solicitor will see to it that the TIB either signs the deed to transfer the property or provides written consent to the sale proceeding. This may result in matters being delayed a little but it should not prevent the sale proceeding.
For specialist advice contact Keith Swan of Patterson, Glenton & Stracey Solicitors by email at ks@pgslaw.co.uk or by telephone on 0808 231 7043. Patterson, Glenton & Stracey Solicitors have provided legal advice to the people of South Tyneside for over 125 years. For details of their full range of services and to view previous Gazette articles please log on to www.pgslaw.co.uk . Patterson, Glenton & Stracey Solicitors: Guided by Logic.
