Furniture and bankruptcy - Case Study Number 3
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 of the Insolvency Act is concerned.
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 had a series of musical flops and are both made bankrupt.
Can Chris and Billie keep all of the furniture contained in the 38 rooms?
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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