My son-in-law was made bankrupt seven years ago. At the time there was no equity in their house, which was jointly owned by my daughter, so they were allowed to retain it. However my son-in-law has recently been advised by the receiver that, should the house be sold at any time in the future, the receiver will be entitled to take half of the net figure realised. Is there no limit?
Normally a bankrupt’s home will cease to be part of the bankruptcy estate after three years from the date of the bankruptcy. The trustee in bankruptcy can, in certain circumstances, apply for this period to be extended. It sounds as though the trustee in bankruptcy still has an interest registered on the property, so your son-in-law may wish to see a solicitor about applying to have that interest removed.