Estranged wife and children facing homelessness if home is sold, court hears

A man's bankruptcy trustee is entitled to orders for possession and sale of a house in Dublin where the man's estranged wife and three children are living, a High Court judge has ruled.

Estranged wife and children facing homelessness  if home is sold, court hears

A man's bankruptcy trustee is entitled to orders for possession and sale of a house in Dublin where the man's estranged wife and three children are living, a High Court judge has ruled.

A two year stay will apply on the orders.

The woman, who has a barring order against her husband and has initiated family law proceedings, had said she and the children, aged between 10 and 20, would be homeless if the house was sold.

In a judgment on Tuesday, Mr Justice David Barniville concluded it was appropriate to make the orders after finding various offers from the man - now a discharged bankrupt - to buy out the OA's interest in the property were properly rejected by the OA and the woman is apparently not in a position to make an offer.

He had "considerable sympathy" for those affected and would grant a stay of two years on the orders, the maximum time permitted under the Bankruptcy Act.

Such a stay was "appropriate" in light of the competing interests of the man's creditors and of his wife and children.

He hoped the time would be used to try and reach a resolution which would mean the property would not have to be sold.

Chris Lehane, the Official Assignee (OA) in bankruptcy, represented by Edward Farrelly SC, had sought the orders but earlier indicated he would agree to such a stay given the "difficult circumstances", particularly of the mother and children.

The judge noted, under the Bankruptcy Act, the court can rescind or vary the orders if circumstances change or there are other developments. He adjourned making formal orders to next month to allow the sides time to consider the judgment.

The house was jointly owned by the man - adjudicated bankrupt on his own application in February 2015 and discharged from bankruptcy a year later - and his wife.

Arising from the bankruptcy, the man's 50% interest remains vested in the OA for the benefit of his creditors.

The man's indebtedness in January 2015 was put at €565,200, including secured creditors of €554,000.

The OA obtained a €400,000 valuation for the house in 2015 which the man disputed. No alternative valuation was provided.

The house is mortgaged to KBC with about €261,000 outstanding on the mortgage last month, including €53,000 arrears.

The OA calculated the positive equity in the house vesting in the OA at €65,818 and invited the man or woman to make an offer for that.

The man in early 2018 offered to pay €10,000 via a €5,000 lump sum and 12 monthly payments of €833.

He also offered, if KBC allowed him to remortgage it for €15,000, to pay that to the OA and, if he were let keep his 50 per cent share, to sign over 15-20 per cent of his share of the profits on any future resale of the property.

The judge said the OA was entitled to refuse those offers.

The woman had said in late 2018 she was living in the property with her four children, all of whom were dependants at that stage. One has since left home.

She has no alternative accommodation, is making mortgage payments and other outgoings and has a payment plan with KBC, she also said.

She would be seeking orders in matrimonial proceedings to have all the interest in the property transferred to her.

The court was told the woman is working but, as matters stood, it did not appear she could make an offer for the property.

Mr Justice Barniville noted neither the man nor his wife were legally represented during the court hearings but the man appeared to have been advised for a time by the New Beginnings group.

The judge saw no prospect of the man returning to move back into the house but stressed he was not prejudging any application the man may wish to bring concerning the barring order or the family law proceedings.

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