HL Deb 23 October 1985 vol 467 cc1266-7

331 Before Clause 153, insert the following new clause:

("Rights of occupation of bankrupt.

.—(1) This section applies where a person—

  1. (a) who is entitled to occupy a dwelling house by virtue of a beneficial estate or interest; and
  2. (b) with whom any children have their home, is adjudged bankrupt.
(2) Whether or not the bankrupt's spouse (if any) has rights of occupation under the Matrimonial Homes Act 1983—
  1. (a) the bankrupt shall have as against the trustee of his estate and persons deriving title under that trustee the same rights of occupation under that Act as a person who fell within subsection (3) below would have and
  2. (b) subject to the provisions of this section, that Act shall apply accordingly.
 (3) This subsection applies to a person if—
  1. (a) that person is the spouse of the bankrupt;
  2. (b) that person is not entitled to occupy the dwelling house by virtue of a beneficial estate or interest;
  3. (c) that person married the bankrupt immediately before the commencement of the bankruptcy; and
  4. (d) the dwelling house is a matrimonial home of the bankrupt and that person.
 (4) Any application by the trustee of the bankrupt's estate for an order under section 1 of the said Act of 1983 shall be made to the court having jurisdiction in relating to the bankruptcy. (5) On such an application as is mentioned in subsection (4) above the court shall make such order under the said section 1 as it thinks just and reasonable having regard to the interests of the creditors, to the bankrupt's financial resources, to the needs of the children and to all the circumstances of the case other than the needs of the bankrupt. (6) Where such an application is made after the end of the period of one year beginning with the first vesting, under Chapter V of this Part, of the bankrupt's estate in a trustee, the court shall assume, unless the circumstances of the case are exceptional, that the interests of the bankrupt's creditors outweigh all other considerations.")