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Bankruptcy Case Studies In Respect Of "Your
Furniture"
In a bankruptcy whether or not you keep
your furniture depends on the interpretation of Section 283
of the Insolvency Act. If you have not already read this section
and wish to do so click here.
Background
Mark and Joannehave lived together in
their rented home for many years. Mark had bought all of the
furniture in the house out of his own earnings. Owing to circumstances
outside of Marks control he was made bankrupt.
As further background note that Mark
and Joanne's home is a four bedroomed detached property. They
have two children living at home.
Question
Can the Official Receiver (O.R.) seize
and sell all or any of Mark and Joanne's furniture and apply
the proceeds in favour of Mark's bankruptcy creditors?
Answer
Mark and Joanne will retain the furniture.
The Official Receiver has no interest in that furniture.
The furniture in the home is of a "reasonable" value
and is necessary for Mark and Joanne's everyday needs.
Comment
The bankruptcy laws are not punitive
in relation to furniture.
Outside a bankruptcy a bailiff would
possibly sieze such items as a TV and a video recorder. In
Purnells experience over the last fifteen years the O.R. has
not seized such items.
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