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Bankruptcy Case Studies In Respect Of "Your
Furniture"
The law regarding furniture within a
bankruptcy is set out in section 283 of the Insolvency Act.
If you have not already read this section and wish to do so
please click here.
Within this illustration we examine the interpretation of
the word "reasonable" as far as section 283 is concerned.
You can keep furniture you "reasonably" need - but
what is "reasonable".
Background
Ben is a bachelor. He owns his own home
which is a two bedroomed flat with a kitchen, dining room
and lounge. The flat is full of furniture of a normal everday
nature. Several years age Ben inherited a picture by Picasso
from his uncle. Ben, for reasons not addressed here is made
bankrupt.
Questions
Can Ben keep his "everyday furniture"?
Can Ben keep the "Picasso" picture?
Answer
Ben can retain his "everyday furniture"
as it is needed by him for his "reasonable" use.
Ben has to hand over the Picasso to the Official Receiver
as he does not "reasonably" need that picture for
his everyday needs.
Comment
In the experience of Purnells over the
sixteen years since the 1986 Insolvency Act was made law,
only one client has had some furniture retained by the Official
Receiver.
If you click on the third case study
on "furniture" you will see what happened in that
particular matter.
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