Bankruptcy advise please

[stan777]

Hi my business went into liquidation 3 years ago and this has now brought me to the point where I went bankrupt in June this year. I have had the meeting with the official receiver and I believe my case has now been passed to an insolvency practitioner. I, along with the others who live at my house have received a letter each stating that the house may be sold and we may have to leave. My son would like to buy the equity in the property so I can remain in the house. At what point should he contact the insolvency people to say he wishes to pursue this option? Also, my partner paid the £25k deposit for the property (I am the sole owner/mortgagee) and she has also paid half towards to mortgage/ upkeep of the property for the past 12 years so would the insolvency company take this into account when my son discusses a figure with them? Thank you in advance to anyone who can give me any advice.

 

[Lisa Thomas]

Hi

If this is your residential property you usually have a year before the Trustee can apply to Court for an order for repossession and sale, so you don't need to act overnight but as your son is ready then there is no reason to delay and I would recommend you start negotiations as soon as you are able to.

Yes, the Trustee can consider that your partner has an interest in the property reducing your equity (and therefore the amount required to buy the Trustee out) so get all the paperwork and evidence together for this.

I would strongly recommend you instruct a specialist insolvency Solicitor to negotiate with the trustee on your behalf, especially given the argument as regards the deposit.

I can recommend one if you DM me.

 

[stan777]

Hi

If this is your residential property you usually have a year before the Trustee can apply to Court for an order for repossession and sale, so you don't need to act overnight but as your son is ready then there is no reason to delay and I would recommend you start negotiations as soon as you are able to.

Yes, the Trustee can consider that your partner has an interest in the property reducing your equity (and therefore the amount required to buy the Trustee out) so get all the paperwork and evidence together for this.

I would strongly recommend you instruct a specialist insolvency Solicitor to negotiate with the trustee on your behalf, especially given the argument as regards the deposit.

I can recommend one if you DM me.

Hi Lisa thank you for your reply and advice. I would like to DM you for the recommendation but cannot figure out how to do that! If you could DM me I will then hopefully be able to respond. thanks

 

[Gavin Bates]

Hi

Lisa has provided you with great advice already but one further point to add is to get 3 local estate agents to give a market value for the house.

Normally once you have this you would take the middle figure between the highest and lowest.

I wish you well.

Kind regards

Gavin

 

[Lisa Thomas]

Hi Lisa thank you for your reply and advice. I would like to DM you for the recommendation but cannot figure out how to do that! If you could DM me I will then hopefully be able to respond. thanks

Done!

 

[Blaby Loyal]

Another thing to keep your eye on is whether the Trustee's net interest is close to discharging the creditor claims + costs of the bankruptcy.

I have had a couple of cases referred to me in the past three months where we have been able to enter into negotiations with the Trustee right at the outset and before costs started to mount up.

The difference in value in one case was 'only' £5,000 and so we went down the annulment route for that one. In the other scenario, the debtor had a long-standing personal issue with the petitioning creditor. Eventually, the debtor declined to look at the annulment option.

Annulment may not, of course, be applicable in your case but it's all part of the Forum's beautiful package to alert you to the possibility.

 

[Rob Dunner]

As ever deeply wise Blaby Loyal,
Thank You for being so clear, honest and full of important insight