Michael Bright's Spanish holiday home will be sold to his wife, say sources close to the former Independent Insurance chief executive.

The news comes after a meeting between Bright and his bankruptcy trustee Phillip Sykes, of accountancy firm Moore Stephens, on Tuesday.

Sykes said Bright's Kent mansion and Wapping apartment were already up for sale, with the proceeds to be divided between Bright's creditors and his wife Katie. "The position now is that his interest in the properties is vested in me, but his wife's vested interest remains with her," he said.

Sykes said Bright's Marbella house would be dealt with more slowly.

"I wouldn't rule out selling it or Mrs Bright buying out his interest," he said.

It is understood that selling the house to Katie Bright is the most likely option.

Bright's creditors are HSBC, Natwest and the Inland Revenue. He took out a £4.28m loan late last year with HSBC and is understood to have a mortgage worth more than £1m with Natwest. He is also understood to owe the Inland Revenue "a couple of hundred thousand pounds", according to Sykes.

Sykes said the meeting did not include in-depth talk on Bright's pension, but Bright was aware his pension could be the target of legal action resulting from Independent's collapse.

Under the Insolvency Act, if a director of a company allows a company to trade in a wrongful manner or is found to have made large contributions to a pension fund during a period when the company is financially troubled, creditors could access the pension.

In 1999 and 2000, Bright paid close to £1.15m into his pension fund. His entire pension is believed to be about £3m, much less than the £11m often quoted, because much of it was in Independent shares.

Sykes will meet with Bright's creditors, but said his first task was "to ensure the realisation of assets in an orderly fashion for the best return possible". He said it was too early to say what percentage of their debts the creditors would be repaid.