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| annemarie.sn |
Posted - 28 December 2010 : 06:30:13
Can i claim bankruptcy even if my property is rented out |
| 9 L A T E S T R E P L I E S (Newest First) |
| Viki.W |
Posted - 30 December 2010 : 12:05:23
With the new rules as at 1st January 2011, I guess most people will have to wait the two years and three months before they know what is going to happen with their home.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
| Housing |
Posted - 30 December 2010 : 08:49:53
Hi again,
I accept what Bigal4787 says generally. However, there are exceptions to the rule and I am one that proves it.
I went BR in 2009. The property we live in is jointly owned. My wife bought the BI as, at that time the property was in negative equity.
We have a BTL (in joint ownership too)that was not in negative equity at the time of my BR and my wife bought the BI at a positive valuation - it cost her a few thousand pounds. We had a valuation done - also the OR obtained a valuation and we "split the difference".
My wife kept the rental income whilst I was BR too - also rare
I accept that as an expert in the "Housing" profession, I knew what the legal position was and therefore was able to have a discussion with the OR about the BTL and therefore accept we may well be a unique case. Nevertheless, the property was "saved" so it can (albeit rare) be achieved
Good luck to you in your situation
Richard (Housing)
"There are no problems - only solutions" |
| Bigal4787 |
Posted - 29 December 2010 : 23:57:40
Apologies pressed the submit button too quickly!
To continue, therefore unless the tenant in your property is a former spouse, civil partner, ex spouse or ex civil partner, then it will be viewed as not being a family home, and so will not be revested after 3 years, it will remain in the bankruptcy estate until it is dealt with(i.e.you won't get it back)
As housing said though it isn't neccessarily the case that the OR would manage the property, if there is no tenant then there is no need.
Likewise, if the property has been tenanted without the mortgagees permission, it is unlikely that either they or the OR would manage it,as it would bind them to a tenancy agreement that they are not currently bound by, so if that is the case the mortgagee is free to sell the property with vacant possession, and without giving the tenant prior notice(Keech v Hall (1778).
So in essence what happens depends upon whether your lender gave permission for you to put a tenant in, or they didn't, and whether the tenant is a former spouse, partner etc.
In all the cases of BTL landlords that I dealt with(solely owned), they lost all their BTL properties, the only one they kept was the family home. The only exception will be if the property is jointly owned, as the legal title cannot be seperated.
Hope this clarifies things a bit better.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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| Bigal4787 |
Posted - 29 December 2010 : 23:37:37
Hi,
A tenanted property is not normally classed as a family home in bankruptcy, and so WILL NOT RE VEST to the bankrupt after 3 years, instead it will remain in the bankruptcy estate until dealt with.
The following are what the OR deems to be tenanted:
a.Property purchased as an investment property with the help of a buy-to-let mortgage (see paragraph 31.11.36),
b.Property purchased as a home with the help of a residential mortgage, with the bankrupt having later obtained the consent of the mortgagee to let the property out (consent to let)
c.Property purchased as a home with the help of a residential mortgage, with the bankrupt having later let the property out without the permission of the mortgagee (unauthorised tenancy)
The only exception to this would be where the tenant is a former spouse, civil partner, ex spouse or ex civil partner
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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| Housing |
Posted - 29 December 2010 : 13:05:43
It is not necessarily the case that the OR will manage the property. It very much depends upon the other circumstances that relate to your situation.
If it is a BTL and you own another property (i.e. the one you live in) it is not necessarily the case that you will lose both of them either.
It is worrth posting some more detail and I will see if I can make some suggestions to assist in a way forward.
Housing
"There are no problems - only solutions" |
| Bigal4787 |
Posted - 29 December 2010 : 12:35:09
Hi Annmarie.sn
you can petition for bankruptcy, however as your property(you don't say whether you have any more) is rented out, it won't be classed as your family home and the OR will seek to appoint their agents to take over the management of the property, and collect any rent until either the tenant moves out, or the mortgagee goes for repossession.
One way to avoid this would for you to move back in once any tenancy agreement has been cancelled, but having due regard to giving the tenant proper notice etc.
However not knowing your full circumstances, there may be other options which the other experts may be able to help with i.e. Reviva, Viki
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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| Viki.W |
Posted - 29 December 2010 : 08:44:09
Hi annmarie.sn, welcome to the forum.
Can you please post a bit more info, or call one of the experts to chat through your situation.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
| Housing |
Posted - 28 December 2010 : 16:54:45
Do you also own the property that you live in?
Post with some more detail and I am sure we will be able to make some suggestions.
Do not despair, Housing
"There are no problems - only solutions" |
| debtinfo |
Posted - 28 December 2010 : 09:21:20
yes but there may be complications with the property |
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