The house that estoppel built?

[The full version of this article was originally published in the Lexis Nexis Insolvency Law Bulletin]

How long does a bankruptcy trustee have to sell a bankrupt's home? What if the Trustee allows the bankrupt to live in the property, and pay the mortgage, council, and water rates, and repair the property for almost 5 years? Or for 8 years? More? Will the Trustee eventually become estopped from selling the property after such a long period? The answer may surprise.

For at least 20 years bankruptcy trustees have been cautious to avoid any estoppel arising because they have allowed the bankrupt and any family members to remain in the property and treat the property as their own.