6. Your home

Your trustee can sell your home if it’s the only way to pay your bankruptcy debts. You may have to give up:

  • your beneficial interest - your share of the property after any secure debts (like a mortgage) have been paid
  • legal ownership of the property

Sole owners

The beneficial interest and legal ownership are transferred to your trustee. This means you can’t sell the property or claim any money from a sale.

A bankruptcy restriction or notice is added to your property’s entry in the land register to say this.

It can only be removed if it’s been added to your property by mistake. Send Land Registry a signed statement saying you aren’t bankrupt and an application to change the register for a property.

Joint owners

The beneficial interest is transferred to your trustee.

A ‘Form J restriction’ is added to your property’s entry in the land register. This means your trustee will be told of any dealings connected with your home, eg if you try to sell it.

It can be removed if you can prove you (as the bankrupt) don’t have a share in the property, eg if your partner owns the property. The owner has to send Land Registry a signed statement saying they aren’t the bankrupt person and an application for the cancellation of a Form J restriction.

Stop the sale of your home

You might be able to stop or delay the sale of your home if, for example:

  • the value of your beneficial interest is less than £1,000
  • the beneficial interest or legal title can be sold to someone else, eg a partner
  • you need to organise somewhere for children or a partner to live - the sale can be delayed for up to 1 year

You may want to get legal advice to find out if you can stop or delay the sale of your home.

Check if you can get legal aid to help with your legal costs. You can get advice from Civil Legal Advice if you’re eligible.

Rented property

Your landlord may be told that you’re bankrupt and your rental situation may be affected.