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john.m
Junior Member
181 Posts |
 Posted - 12 May 2008 : 21:06:43
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I have a house worth about 160k and falling ith a joint mortgage of 154k, I am looking to go bankrupt..Will the house be sold even though my wife owns half and after paying fees etc there will be no equity left...thanks
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 12 May 2008 : 22:29:15
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Hi John,
The house will not necessarily be sold.
The Trustee in Bankruptcy will look to sell your beneficial interest in the property which from the above figures equates to aprox £3000.
They would offer your wife as the joint owner to purchase your BI form them.
She will have to supply an up to date valuation and mortgage statement then her offer of purchase whereby she can include in her offer costs of sale and early repayment penalties from the mortgage company if the property were to be sold on the open market.
If this brings the property into a negative equity situation then she will be able to purchase the BI for the nominal sum of £1 plus the trustee’s legal costs.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 12 May 2008 : 22:29:52
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The OR will calculate the equity based upon no allowances for costs of sale, and will invite your wife to make an offer to acquire your share which is approximately £3,000.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 12 May 2008 : 22:44:02
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Melanie,
It's not always that Black and White as the alternative would be the sale of the property where these costs would be incurred and could potentially cause a negative equity situation, I can not see the OR purposely putting someone in this position, but I accept it's a grey area and it changes from one office to the next.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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melanie_giles
Senior Member
1191 Posts |
Posted - 13 May 2008 : 00:12:44
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I guess that for the last 20 years I must have been in the black side then Julian, because I have never seen the OR accept costs of sale in an equity calculation, and neither has my Bankruptcy Manager who worked in the ORs office for many years.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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mattdjuk
Junior Member
214 Posts |
Posted - 13 May 2008 : 08:49:36
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| I'm in a similar situation - Costs of sale aside, I have a mortgage statement that says to redeem the mortgage now would cost me 205K - it is broken down as 11.5K early redemption, and the 193,500 as the mortgage. Would the OR accept that when my wife comes to buying the BI? Or would they only accept the 193K and calculate the equity based on the difference between that and the valuation? |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 13 May 2008 : 10:15:23
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Melanie,
I would be interested to hear if your manager was working for the Insolvency Service prior to the Enterprise Act coming into affect or after, As Prior to the Act I agree whole heartedly, once a restriction was placed over the property they would pass out to a IP to deal with, However since the Act I have found significant changes to the attitude towards property.
The three year rule as part of the Enterprise Act I believe is the cause to this, but it does vary considerably from one office to another.
I have also found with the Regional Offices being set up by the Insolvency Service there has been a significant reduction in the number of cases being referred to IP's as trustee in Bankruptcy.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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zoe
Junior Member
329 Posts |
Posted - 13 May 2008 : 17:21:10
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My OR office are point blank refusing to take this into account - i have asked before if there are any offices that do - do you know of any Brett??
Z x |
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melanie_giles
Senior Member
1191 Posts |
Posted - 13 May 2008 : 22:56:24
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Brett
My point was about whether the OR allows early redemption penalties or not, so I'm not quite sure what relevant the OR doing rota appointments or not has to the debate? Or am I missing something? Of course the numbers being passed out to the private sector have reduced, which was for the very reasons the RTLU's were established.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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house repossessed in br
