§
332 Before Clause 153, insert the following new clause:—
("Payments in respect of premises occupied by bankrupt
. Where any premises comprised in a bankrupt's estate are occupied by him (whether by virtue of section [Rights of occupation of bankrupt] above or otherwise) on condition that he makes payments towards satisfying any liability arising under a mortgage of the premises or otherwise towards the outgoings of the premises, the bankrupt shall not, by virtue of those payments, acquire any interest in the premises.")
§
374 Page 150, line 25, at end insert—
' "dwelling house" includes any building or part of a building which is occupied as a dwelling and any yard, garden, garage or outhouse belonging to the dwelling house and occupied with it;'.
§
558 Page 206, line 33, at end insert—
'1983 c. 19 The Matrimonial Homes Act 1983. Section 2(7).'
§ This group of amendments is the Government's response to the representations made on the treatment of the family home where bankruptcy occurs. When the Bill was previously before your Lordships, the House debated on two occasions the desirability of reviewing the present position as regards the 1268 bankrupt's home. Many of your Lordships made very valuable contributions to those debates: in particular, perhaps I might mention the noble and learned Lord, Lord Denning, and the noble Lords, Lord Meston and Lord Bruce of Donington.
§ Although the Bill is largely of a technical nature, this is an area where we are dealing, more than anything, with the social aspects of bankruptcy and the need to allow a bankrupt and his family time to adjust to changed circumstances so that they may make proper arrangements for their future.
§ I undertook both in Committee and on Report that the Government would bring forward amendments in the other place to deal with these matters. Here your Lordships have those amendments, together with some new ones, which largely clarify the drafting of the new clause. I have indicated that this matter has been debated at length and my department has consulted with a number of professional bodies and other interested organisations. Although there was no clear consensus of opinion arising from those consultations, useful suggestions were made and they have been included in the proposals. Although the question of the family home as considered by the review committee and debated in your Lordships' House was concerned with properties in which the bankrupt's interest could be sold, we have also sought to provide protection to the family where the bankrupt's interest in the property in question is of no value to the estate by enabling the spouse, or, in circumstances where he has custody of children, the bankrupt himself, to apply for a vesting order on a disclaimer by the trustee.
§ The amendments represent a compromise between two conflicting interests, and in our view achieve a reasonable balance between the rights of the creditor, who can only look to the bankrupt's assets for payments of his debt, and those of the family, who will normally be able to remain in the property concerned for a reasonable period so as to give them an opportunity to adjust to their changed circumstances and make arrangements either for the alternative accommodation or for the buying out of the bankrupt's interest in the property.
§ There are eight new amendments to these provisions which largely improve the drafting of the clauses in relation to the matrimonial home in a bankruptcy. Certain substantive changes are made, and I shall comment briefly on the two main changes. First, the provisions relating to occupational rights of the bankrupt himself are amended and make it clearer that only persons under 18 at the relevant date are to be taken into account by the court; secondly, the relevant "qualifying" date for circumstances to be taken into account by the court in connection with both the new clauses and the rights conferred on occupants in connection with a disclaimer is specified as that of the bankruptcy petition, thus ensuring that the bankrupt cannot after that date but before he actually becomes bankrupt manoeuvre himself into an artificially advantageous position.
§ I am happy to speak to the other, more detailed provisions if any noble Lord thinks that I have not sufficiently covered them in these general remarks. I commend the Commons amendments to your Lordships.
1269§ Moved, That this House do agree with the Commons in their Amendments Nos. 304 and 305.—(Lord Lucas of Chilworth.)
§ On Question, Motion agreed to.