Mr and Mrs M are delighted after the High Court ruled that they could keep their home of the last 40 years. Mr and Mrs M bought their home from Mrs M’s grandmother’s estate in 1969. Unfortunately they ran into financial difficulties in the early 1990s and the bank was threatening to take possession of their home. They arranged to transfer their home to one of their three sons in order to raise some money to pay the bank. However, their son then had a failed business venture and went bankrupt two years later. Accordingly any property held in his name would have automatically vested in a trustee in bankruptcy.

As a result of Enterprise Act 2002 a trustee in bankruptcy had to apply for an order for sale by April 2007 if they were going to do so, or they would lose that right. A trustee was appointed and applied to the court for an order for sale of Mr and Mrs M’s home in March 2007, some 14 years after the bankruptcy.

Sharon Auton of Thompson Smith & Puxon helped Mr and Mrs M to successfully argue that they owned their home, and not their son, in whose name it was registered. The High Court Judge in Colchester agreed but the trustee in bankruptcy appealed. With much relief the High Court agreed with the earlier Judge and the trustees appeal was dismissed. Furthermore the trustee personally was ordered to pay Mr and Mrs M’s costs. 

It has been a very stressful few years for Mr and Mrs M and their family and they are now very relieved that they are no longer facing being thrown out of their home.