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 confirming this.

A bankruptcy restriction can be removed if it’s been added to your property by mistake. Send Land Registry a signed statement saying you aren’t the 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.

A Form J restriction 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 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

Rented property

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