The Family, Creditors, and Insolvency

This book considers the impact of insolvency and the claims of creditors on the family. The conflict between the interests of creditors and the interests of the family is not easy to resolve particularly in the context of a marriage breakdown, bankruptcy, or where claims concern the possession of the family home. This is therefore an area of considerable practical importance and one that raises key issues of principle. The book provides commentary on the existing regime (covering both contentious and non-contentious matters), and also highlights new questions and problems not previously considered in any depth, including the enforceability of mortgages of the family home against surety spouses, and the impact on family members of application of orders for sale. It acts as a guide for family and insolvency practitioners who already have an understanding of basic procedures but need advice on the complexities when these two areas come into conflict. The book first examines the claims of creditors in this context with special emphasis on the position of secured creditors. It considers the circumstances in which a mortgage may not be binding on a spouse or cohabitant, the enforcement of mortgages, and the position of creditors and trustees in bankruptcy seeking an order for sale of the family home. Bankruptcy and other methods of dealing with insolvency are examined in the light of the Enterprise Act 2002.It addresses the practical implications of recent legislation and decisions on such matters as pensions, and examines the application of established principles such as equitable accounting. Also included are extracts from relevant statutes and the Insolvency Rules.