Any interest »”>beneficial interest in your home is automatically an asset of your bankruptcy and must be realised for the benefit of creditors.

These funds can be raised by a voluntary sale of the property with the non-bankrupt spouse retaining their share of the proceeds, or by the non-Bankrupt spouse “buying out” the bankrupt’s interest in the property.

If neither of these is achievable a forced sale following the Trustee in Bankruptcy obtaining a a Court order for possession of the property may occur.

If the property has low net equity (see beneficial interest), i.e. less than £1,000, or has negative equity the property can be exempt from the Bankruptcy entirely.