Personal Insolvency – Bankruptcy

The trustee in bankruptcy of Mr Foyle applied for an order for possession and sale of the matrimonial home, which was jointly owned by Mr and Mrs Foyle. The trustee’s application was made some 13 years after the bankruptcy order, at which time there was no equity in the property. Since the order was made, house price inflation had created significant equity.

Mr and Mrs Foyle appealed against the decision on the basis that the decision contravened Articles 6 and 8 of the European Convention of Human Rights ("ECHR") (right to a fair and expeditious hearing and right to respect for home and family life). The court considered whether the 13 year delay was an "exceptional circumstance" within section 335A of the Insolvency Act 1986 and whether this would be sufficient to rebut the statutory presumption in favour of creditors.