CHAPTER 30

EXEMPT PROPERTY AND PROPERTY NOT COMPRISED IN BANKRUPT’S ESTATE

March 2009

INTRODUCTION

30.1 Introduction (amended January 2012)

This chapter deals with property belonging to the bankrupt that does not form part of the estate, and so should not be realised for the benefit of creditors.

Property can be claimed by a bankrupt as exempt either on the grounds that it is necessary for satisfying a basic domestic need of the bankrupt or his/her family, or because it is necessary to the bankrupt for use personally by him/her in his/her employment, business or vocation. See paragraph 30.2 for further guidance.

Certain tenancies where the bankrupt is a tenant are considered as exempt property, which in reality is likely to cover most residential tenancies that the official receiver will encounter (see Part 4 for guidance on dealing with residential tenancies).  Freehold and leasehold property is dealt with in Chapter 31.3. For information on how to deal with assets that are not exempt, see Chapter 31.

The chapter is divided into parts as follows:

Part 1 – Exempt property generally (paragraphs 30.2 to 30.24)

Part 2 – Items that may be claimed as exempt property (paragraphs 30.25 to 30. 44)

Part 3 – Claim by trustee of items of excess value and items claimed by bankrupt not considered to be exempt (paragraphs 30.45 to 30.59)

Part 4 – Tenancies (paragraphs 30.60 to 30.98)

Part 5 – Property personal to the bankrupt (paragraphs 30.99 to 30.120)

Part 6 – Motor vehicles as exempt property (paragraphs 30.121 to 30.157)

The following abbreviations are used in this chapter;

CAR B – case assessment record

CSA – Child Support Agency

IPA/IPO – Income payments agreement/income payments order

IVA – Individual voluntary arrangement

[On to Part 1 – Exempt property generally]