| T O P I C R E V I E W |
| ronnie.f |
Posted - 16 June 2008 : 14:01:32
I am considering bankruptcy. through ill health i have had to resign from my job.
i have made bad investments:
my home is in negative equity with a second charge on it.
I have an overseas mortgage with no equity in it.
I have no savings.
My question is, if I become bankrupt will the courts in Scotland be able to force the sale of the overseas ( Italian)property?
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| 9 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 22 June 2008 : 13:11:03
Hi Melanie,
That's fantastic! The 3 year discharge and no time limit on dealing with property is a significant difference, so it would appear the Enterprise Act 2002 was not adopted north of the border. Many thanks for clarifying that.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 22 June 2008 : 13:08:53
In brief - sequestration is the legal term used for bankruptcy in Scotland. The Accountant in Bankruptcy is the Scottish equivalent to the Official Receiver.
To apply for sequestration, a debtor must owe at least £1,500 to creditors and the application cost is currently £63. The debtor must also show that at least one creditor has taken them to Court or taken steps to enforce their debts.
Once subject to sequestration proceedings, there is still a three year discharge period and no three year maximum time for the Trustee to deal with their interest in a property. Also there are not BRU or BRO procedures yet in place.
Everything else is in line with the other procedures using in England, Wales and Northern Ireland.
Hope this helps, but let me know if there is anything else you require.
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 - 21 June 2008 : 14:10:32
Melanie, To be honset, I'm not entirely sure. I was hoping you could shed some light on the differences between sequestration in Scotland and bankruptcy in England & Wales (if there is any, apart from a different name).
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 21 June 2008 : 00:53:45
Julian - perhaps I am being a bit thick here, but I cannot understand the point you are making. Which particular difference are you commenting about?
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 - 19 June 2008 : 13:53:02
Apologies, but as far as I'm aware, there was a recent announcement about the BR laws in Scotland being brought into line with those in England & Wales. If there is no difference in the law, why would this be necessary. If I've got the wrong end of the stick, I apologise.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 18 June 2008 : 00:51:26
Thanks Julian
I also practice in Scotland and so am very aware of the differences in all procedures both North and South of the border.
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 - 17 June 2008 : 10:15:38
Hi Melanie,
Whilst it is true that sequestration in Scotland and BR in England & Wales are being brought in line with each other, there are still enough differences to make getting advice from a sequestration specialist advisable. However, it is likely (as you state) that is is purely academic in this instance.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 16 June 2008 : 23:08:46
There is no difference in the Scottish laws, although there is no time limit for realising second properties - so the Trustee could sit on the Italian property in the hope that it might appreciate in the future. You will not be permitted to continue paying mortgage payments on an investment property, and it is likely that the Italian bank will commence possession proceedings well before the Trustee decides to realise his/her interest - so the matter is largely academic.
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 - 16 June 2008 : 14:17:43
Hi Ronnie and welcome to the forum.
The sequestration rules in Scotland are different fro mthe bankruptcy rules in England & Wales. I would suggest, however, that assets are dealt with in a similar way. If this is the case, then the Trustee will need to relaise your beneficial interest in this overseas property. In English law, a third party could buy your beneficial interest for £1 + costs (total circa £250). However, I would seek guidance from a sequestratiuon specialist near you for confirmation.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
