I move amendment No. 13:
In page 26, between lines 29 and 30, to insert the following new subsection:—
"(4) Notwithstanding any provision to the contrary contained in subsection (3), no disposition of property of a bankrupt, arranging debtor or person dying insolvent, which comprises a family home within the meaning of the Family Home Protection Act, 1976, shall be made without the prior sanction of the Court, and any disposition made without such sanction shall be void."
The reason for this amendment is to restrict in the case of the family home, the new power which section 61 confers on the Official Assignee to dispose of property of a bankrupt or arranging debtor without reference to the court. During the debates in both Houses and already in discussions in this sub-committee concern was expressed with regard to the effect of bankruptcy on a family home. Suggestions were made with a view to excluding it in some way from the realisation of the debtor's assets or at least to providing guidelines to the court in the exercise of its discretion under the proposed amendment. As members are aware, legislation is being prepared with a view to creating a legal presumption that a family home will in future be in the joint ownership of both spouses. The proposed legislation will, as I have already indicated, contain specific bankruptcy provision. I think that this legislation will go a long way in alleviating some of the problems referred to by Members but in the light of the discussion which we have had on section 59 this is not the final solution to the points raised.
In the meantime, in order to ensure that the interest of both spouses are taken into account, in particular where the family home is in the sole ownership of the debtor, I am putting forward this amendment so that where the assets of a bankruptcy which vest in the Official Assignee include the family home, no disposition of it can be made without the sanction of the court.