The uncertain times we are currently experiencing have seen the number of bankruptcies increase. One of the more common situations that occurs when someone goes bankrupt is that the family home is owned jointly by the bankrupt person and a spouse/partner. The co-owner does not have to necessarily sell their interest in the house and can put pressure on the trustee to sell the bankrupt’s share to the other co-owner for a very modest price.

 

The Trustee can apply to the court to try and force a sale but the cost and uncertainty involved usually mean that the Trustee will prefer to get something by way of a voluntary agreement than hold out for the real value of the bankrupt persons interest in the property.

 

Anyone in this situation should seek professional advice. The Trustee confronted by someone who appears to be determined to fight things out will probably be even more eager to come to a voluntary arrangement.