INS9504 - Bankruptcy

Matrimonial homes and jointly owned properties

Where one spouse is made bankrupt a share in a matrimonial home may form part of the assets in the bankrupt’s estate.

The property may not have to be in joint names for either spouse to be able to claim a share.

Although a bankrupt may not be married there may still be a share in a jointly owned property.

Disputes may arise over

• the share of the property claimable by the trustee
• possession and sale.

It may become necessary for the Revenue to consider a guarantee of costs for the trustee to pursue the property

• Check the EIS file as well as the statement of affairs if available, to establish whether the debtor has an interest in the matrimonial home.

See INS9503 for the time limits for realising a bankrupt’s interest in property.

After issue of the final claim letter

• Make regular checks with the trustee about the realisation of the asset.

But if the debtor’s spouse or children are living with the debtor, it may be possible for a sale by the trustee to be delayed until the end of the first year of the bankruptcy.