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Divorce—Bankruptcy

16 June 2011
Issue: 7470 / Categories: Case law , Law digest
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Mekarska v Ruiz and another [2011] EWHC 913 (Fam), [2011] All ER (D) 14 (Jun)

It was settled law that a court had to consider whether, on any grounds that had existed at the time that the order was made, that order ought not to have been made. A court might annul a bankruptcy order if it concluded that, on the date of that order, the bankrupt had been able to pay his debts. It would not normally be right to annul a bankruptcy order unless, at least, it was shown that as at the date of the order the debtor was in fact able to pay his debts, or had some tangible and immediate prospect of being able to do so which had since been fulfilled or would so have been but for the order itself.

A wife’s home rights endured until they were brought to an end by an order of the court, whether in the divorce proceedings or by an order in the bankruptcy proceedings under s 335A or s 336(2)(b) of the Insolvency Act 1986.

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