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Charging order, bankrupt partner in prison

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  • Charging order, bankrupt partner in prison

    I own a property jointly with my partner (no mortgage). My partner has a lot of personal debt, approx £50k, there are also now 2 charging orders on our property (total approx £11k) in his name.
    My partner is currently in prison, and is considering bankruptcy.
    How will this affect me? I recently came into an amount of money, just enough to pay off the mortgage.
    We want to transfer the property into my name, but I do not have £11k to clear the charging order.
    If he were to declare bankruptcy, what would happen to the charging order?
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  • #2
    Re: Charging order, bankrupt partner in prison

    "9.105 Effect of liquidation or bankruptcy

    (Amended May 2010)

    Provided the charging order was made absolute prior to the commencement of the liquidation or bankruptcy (prior to the petition in a liquidation, prior to the bankruptcy order in a bankruptcy), a creditor would normally be entitled to retain the benefit of the charging order.

    In Re Roberts Petroleum Ltd v Bernard Kenny Ltd (in liquidation) [1983] 1 All ER 564 HL it was held that the making of a winding-up order was sufficient grounds for the charging order not to be made enforceable and for the order to be discharged. The case may also be applied following the making of a bankruptcy order. For details of more recent cases see paragraphs 9.105A to 9.105C."

    Charging Orders
    "Family means that no one gets forgotten or left behind"
    (quote from David Ogden Stiers)

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