Bankrupts to be allowed take interest in homes after 3 years

People who apply for bankruptcy will be allowed take ownership or interest in their family home after three years, under new laws.

The overhaul of the bankruptcy rules will reduce the number of years that people stay in bankruptcy from three to one.

The measures have been widely welcomed amid suggestions the radical changes may force banks to do deals with borrowers in debt or their assets will be sold at rock-bottom prices.