From the moment that you are declared bankrupt, the official receiver or whoever is acting as your trustee (an insolvency practioner for example) will take control of all of your assets. He or she will then sell them to pay your creditors.

If you own your own home, either freehold or leasehold, mortgaged or otherwise, it will be included in your list of assets and it will be sold if this is the only way to release money to your creditors.

If you own the property jointly - with a partner or spouse for example - it can still be sold. In this instance, you would normally benefit financially from any sale, but as a bankrupt what is called your "beneficial interest" will be paid to the official receiver or trustee to then pay your creditors.

If your husband or wife is living with you, and especially if you have children living with you, it may be possible to postpone the sale of the house for up to a year after you are declared bankrupt. This is to allow you to make alternative housing arrangements and help minimise the disruption of your family's life.

It may also be possible for a non-bankrupt partner, relative or friend to buy your beneficial interest from the trustee - your trustee will be able to advise you on this.

If your home is not sold, your beneficial interest in the property will not return to you - even when you are discharged from your bankruptcy. It remains with the official receiver and trustee and can be sold even if you are no longer bankrupt. Any profit realised from the sale - due to your home rising in value - allso goes to the trustee.

In most cases, if your beneficial interest in your home has not been sold by the third anniversary of your bankruptcy, it will cease to be part of your bankruptcy estate and will be returned to you.

Please note, if you own property or a share in property that you do not divulge to the official receiver or trustee, he or she will have three years from the date on which he or she does find out.