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Bankruptcy Case Studies In Respect Of "Your
Furniture"
Section 283 has been discussed earlier
. If you would like to re-read this section please click
here.
In this case study we continue to consider what the word "reasonable"
means as far as that section is concerned.
Background
Chris (a disc jockey) and his wife Billie
(a singer) own a mansion. That property has 20 bedrooms and
a further 18 rooms down stairs. They have no children.
Chris and Billie have fitted out their
home from Ikea and High Street stores. They have not bought
any furniture at an outlandish price. They have, however,
fully furnished the 38 rooms for the use of occasional guests.
Both Chris and Billie have a series of
musical flops and are both made bankrupt.
Question
Can Chris and Billie keep the furniture
contained in the 38 rooms?
Answer
No.
To have a property consisting of 38 rooms, all fully furnished
is not reasonable for the personal
needs of Chris and Billie. In this instance the Official Receiver
is likely to allow the couple the furnishings in four rooms
upstairs and four rooms downstairs. The remaining furniture
would be seized and sold on behalf of the bankruptcy creditors.
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