| T O P I C R E V I E W |
| indy2005 |
Posted - 22 May 2008 : 19:31:58
Hi,
Me again. Just getting a few Qs of my chest which have been brewing all day.
I spoke to Julian about Equity of Exoneration. I withdrew 65K 2 years ago on a remortgage to pay my unsecured creditors. It was our intention that the house was my wifes. This year we made good on the promise aswe came off a fixed interest deal, and had a declaration of trust drawn up.
I am wondering...as I have only put down £500 contribution from my wife, and the mortgage has been 950+ for 2 years, can we still apply equity of exonaration principles? If not, how is beneficial interest calculated in these cases. Is it always 50/50 or will it be the difference in equity over the two years since I drew my equity out?
Finally, how is the process of negotiation with the trustee, and when does it ultimately get decided in court?
Thanks
i
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| 15 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 29 May 2008 : 10:25:14
Hi Indy,
If you need any further clarification, please feel free to contact the helpline.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| indy2005 |
Posted - 26 May 2008 : 22:30:51
OK,
I will leave it until I get an idea. My wife would of course argue how could debts in her husbands name, being transferred into a joint debt be a benefit to her. She had no responsibility for my debts at all as they were unsecured, but on the remortgage she suddenly become a joint name on the debt. Wheres the benefit in that! |
| melanie_giles |
Posted - 26 May 2008 : 22:26:42
I would look at all the facts put in front of me and make a decision - probably by referring it to a lawyer to advice me as well. I cannot possibly tell what the outcome in your case would be, or how I would view it, as I simply do not have sufficient information. You really do need to wait until the OR contacts you and then you will have something solid to work on.
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 |
| indy2005 |
Posted - 26 May 2008 : 22:14:51
Thanks,
I was worried you would say that. If you were a trustee would you be pursuing it thinking you had a strong case? I am thinking of offering 10K from mum as an initial offer of payment, but there is 30-35K equity in property. None of which is mine I honestly believe as I had over 50% equity 2 years ago.
Regards
i |
| melanie_giles |
Posted - 26 May 2008 : 20:56:46
Yes - that is a definate possibility if this goes as far as Court to settle.
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 |
| indy2005 |
Posted - 26 May 2008 : 20:50:59
Hi,
Can I ask another question about equity of exoneration. Could the OR / Courts decide that the withdrawal of funds to pay my debts 2 years ago did benefit my wife? i.e. wouldnt the house as a whole be better off if a huge amount of debt is written off.
I have heard cases of equity of ex. claims not working because the partner started a business with the funds, and this was deemed to benefit the other partner as the business put food on the table.
Thanks
i |
| indy2005 |
Posted - 26 May 2008 : 10:38:05
OK,
Thanks. I will accept my fate...! |
| melanie_giles |
Posted - 26 May 2008 : 01:08:59
The OR is not motivated by fees - as they have set rates to charge. I do think you will find it difficult to get a FTVA for the reasons we have already identified.
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 |
| indy2005 |
Posted - 25 May 2008 : 22:58:31
Does a Trustee have to act in the creditors best interests? It seems that an FTVA would be much better for creditors and not so good for a trustee. I have heard of fees of 8K for a trustee for a bankcruptcy as a minimum, but if I was to propose an FTVA of say 20, then the trustee gets (i think) 17%? |
| melanie_giles |
Posted - 25 May 2008 : 15:42:56
Possibly - it will depend upon the figures.
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 |
| indy2005 |
Posted - 25 May 2008 : 13:43:13
Thanks,
Think I may wait until the dust has settled and see what happens with the house. If the house matter gets resolved in our favour I will probably have a better case for an FTVA if I can find a lump sum which is the same or better than an IPA contribution. I am guessing they will get more in an FTVA than an IPA for an equivalent amount due to trustee fees?
i |
| melanie_giles |
Posted - 24 May 2008 : 22:07:20
Possibly - but the OR does not really do a lot of these, so you might be better off instructing an IP from the private sector to look at this for you.
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 |
| indy2005 |
Posted - 24 May 2008 : 01:07:24
Thanks all,
Are we talking about an FTVA here....? |
| melanie_giles |
Posted - 24 May 2008 : 01:05:06
Indy - there is no harm in looking at a post-bankruptcy IVA if that is what you would like to do, but it does not stop the OR investigating your conduct prior to the bankruptcy.
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 |
| JulianDonnelly |
Posted - 23 May 2008 : 13:07:24
Hi Indy,
With availability of funds from your mother then a Full and Final IVA may well be a more suitable solution for your situation.
Being in contact with Paul you are in good hands.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
