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Lord Hodgson of Astley Abbotts: My Lords, I thank the Minister for accepting Amendment No. 278, which was tabled in an attempt to avoid future problems.

Lord Hunt of Wirral: My Lords, perhaps I may join my noble friend in thanking the Minister and say that the Government's habit of adding their name to our amendments is one that we seek to encourage. Indeed, much of today's debate could have been avoided if they had only adopted that practice more widely. However, in the meantime, I beg leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Amendments Nos. 276 and 277 not moved.]

The Deputy Speaker (Lord Ampthill): My Lords, we come to Amendment No. 278, which is certainly a duet, possibly a trio and may even be a quartet. Who cares to move it?

Lord Hunt of Wirral moved Amendment No. 278:

Page 184, line 8, after "by" insert "written"

The noble Lord said: My Lords, let us all move it. I beg to move.

On Question, amendment agreed to.

[Amendment No. 279 had been withdrawn from the Marshalled List.]

Lord McIntosh of Haringey moved Amendment No. 280:

Page 184, line 24, leave out "bankrupt's sole or principal residence" and insert "sole or principal residence of—

(a) the bankrupt,
(b) the bankrupt's spouse, or
(c) a former spouse of the bankrupt."

The noble Lord said: In moving the amendment, I shall speak also to Amendments Nos. 281 to 285. We are close to adding our name to opposition amendments, because our amendments are similar to amendments proposed in Committee—Amendments Nos. 373 to 378. The noble Lords, Lord Freeman and Lord Kingsland, spoke about what the noble Lord, Lord Freeman, called the "deserted wife's charter". My noble friend Lord Sainsbury undertook further to consider the matter, has done so and has tabled Amendments Nos. 280, 283 and 284.

Amendment No. 280 extends the provisions of new Section 283A to ensure that any interest that the bankrupt has in the dwelling house of the spouse or former spouse must be dealt with within three years, otherwise the interest re-vests in the bankrupt. Without the amendment, the position would remain as it is, allowing the trustee to realise the bankrupt's

21 Oct 2002 : Column 1165

interest in a dwelling house occupied by his spouse or former spouse at any time—possibly many years after the date of the bankruptcy.

Amendment No. 284 extends the transitional provision in Clause 256(8) to the bankrupt's interest in the dwelling house of a spouse or former spouse that is their sole or principal residence, so that at the end of three years from the date on which new Section 283A comes into force, if such an interest has not been dealt with by the trustee or otherwise within that three years, such an interest re-vests in the bankrupt.

Amendment No. 283 extends the provisions of new Section 313A, so that the bankrupt's interest in such a dwelling house is re-vested if the trustee applies for an order for sale or possession or a charging order, where the value of the interest is below the prescribed amount.

Government Amendment No. 285 is similar to a previous amendment, Amendment No. 286—it gets confusing when amendment numbers, clause numbers and previous amendment numbers overlap; with the exception of the noble Lord, the Deputy Speaker, we will all get into terrible trouble—tabled in Committee. In Committee, that amendment was withdrawn because we wanted to consider the matter further and table our amendment, which we have done. Amendment No. 285 replaces the Bill's current provision for new Section 283A(10) and instead provides that subsections (4) to (9) of Section 283A apply to bankruptcy cases in existence prior to the coming into force of that section where the bankrupt has an interest in a dwelling house that is the sole or principal residence of himself, his spouse or former spouse.

Therefore, where an application by the trustee to deal with such an interest in one such case is dismissed, the interest will re-vest in the bankrupt. If the bankrupt does not reveal an interest in one case, the three-year time limit will not commence until he does so. The provisions relating to the rules also apply.

Government Amendments Nos. 281 and 282 reflect the policy intention behind the family home provisions in the Bill to ensure that the bankrupt's interest in the family home is dealt with within three years of the bankruptcy and in an equitable way. One way in which that interest can be dealt with is through Section 313 of the Insolvency Act 1986, which allows the trustee to create a charge against the bankrupt's home. The intention behind the amendments to Section 313 is to freeze the value of the bankrupt's interest—except for interest—so that the trustee is not tempted automatically to use a charging order to avoid having to deal with any property and to give the bankrupt some recognition if he has paid his mortgage and sells his home in future.

Section 313 interacts with Section 3(5) of the Charging Orders Act 1979, which allows for the charging order to be varied. That provision might be used to vary the value of the interest specified in the charging order, which would defeat the policy intention of freezing the value of the bankrupt's interest in the family home. To ensure that that policy

21 Oct 2002 : Column 1166

intention is fulfilled, the amendments make it clear that Section 3(5) of the Charging Orders Act 1979 may not be used to vary a charge against a bankrupt's home. I beg to move.

Lord Kingsland: My Lords, as the evening wears on, a harmonious relationship is beginning to emerge between the Government and the Opposition—which I applaud. I think that I am right in saying that all of the amendments that the Government have adopted, to a greater or lesser extent, reflect amendments that we tabled in Committee.

The Minister is correct to say, in relation to Amendment No. 286, that in Committee I raised the point about the bankrupt's failure to inform the trustee or official receiver of his interest in a property. The noble Lord, Lord Sainsbury, said that the amendment clearly had some merit, that he was pleased that it had been tabled and that he would go away to think about it. Encouraged by that, I tabled an improved version but, if I understand the Minister's interpretation of his amendment correctly, mine is now surplus to requirements.

In those circumstances, I repeat my thanks and shall sit down.

On Question, amendment agreed to.

9 p.m.

Lord McIntosh of Haringey moved Amendments Nos. 281 to 285:

Page 185, line 39, leave out "and"

Page 186, line 3, at end insert ", and

(c) at the end insert—
"(5) But an order under section 3(5) of that Act may not vary a charged value."" Page 186, line 9, leave out "bankrupt's sole or principal residence," and insert "sole or principal residence of—

(i) the bankrupt,
(ii) the bankrupt's spouse, or
(iii) a former spouse of the bankrupt," Page 186, line 36, leave out "his sole or principal residence," and insert "the sole or principal residence of him, his spouse or a former spouse of his,"

Page 187, line 1, leave out subsection (10) and insert—

"(10) Subsections 283A(4) to (9) of that Act shall have effect, with any necessary modifications, in relation to the provision made by subsections (7) to (9) above; in particular—
(a) a reference to the period mentioned in section 283A(2) shall be construed as a reference to the transitional period,
(b) in the application of section 283A(5) a reference to the date of the bankruptcy shall be construed as a reference to the date on which subsection (1) above comes into force, and
(c) a reference to the rules is a reference to rules made under section 412 of the Insolvency Act 1986 (c. 45) (for which purpose this section shall be treated as forming part of Parts VIII to XI of that Act)."

On Question, amendments agreed to.

[Amendment No. 286 not moved.]

Clause 263 [Disqualification from office: general]:

Lord McIntosh of Haringey moved Amendment No. 287:

21 Oct 2002 : Column 1167

Page 189, line 26, at end insert—

"( ) In subsection (2) the reference to a provision which disqualifies a person conditionally includes a reference to a provision which enables him to be dismissed."

The noble Lord said: My Lords, Amendment No. 287 is a clarifying amendment and sets out that a "disqualification provision" provided for in Clause 263(2) includes a reference to a provision which enables a person to be dismissed from office on being made bankrupt. It was thought that it was not sufficiently clear that dismissal currently falls within subsection (2) as drafted.

It gives the power to amend any legislation which provides for dismissal on a person becoming bankrupt. For example, it would enable such a provision to be amended so that dismissal could result from the making of a bankruptcy restrictions order rather than simply the making of a bankruptcy order. I beg to move.

On Question, amendment agreed to.

Lord Hodgson of Astley Abbotts moved Amendment No. 288:

After Clause 267, insert the following new clause—

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