| T O P I C R E V I E W |
| sue.r |
Posted - 13 February 2009 : 22:17:26
My daughter has a mortgage on a house which is still in joint names with her ex-spouse. He left about 4 years ago and then went bankrupt 3 years ago and she has solely paid the mortgage payments. The Official Receivers have not forced a sale and getting information from them has been frustrating as she wants the property to be in her sole name. I have just read that after 3 years the property can be returned to her ex who she divorced a couple of years ago. He has not made any payments at all and I cannot beleive he can just come back and reclaim half the house which is now worth more. Is this correct ?? |
| 11 L A T E S T R E P L I E S (Newest First) |
| John |
Posted - 14 February 2009 : 13:50:38
Hi
yes I think that you can check land registry online and also by post but not sure of the costs involved.
timendi causa est nescire
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| gally |
Posted - 14 February 2009 : 11:41:50
is there anywhere i can check to see the exact amount of the charge on the property ? |
| John |
Posted - 14 February 2009 : 11:36:46
Hi gally
I think very many examiner's have true empathy with the bankrupt, particularly when the bankrupt has clearly demonstrated an intention to "play it by the book" as you did.
What I find unusual is for them to suggest that the opportunity to buy your BI may present itself at the £211 level when they have a £7K charge on the property. It's one thing having empathy with the bankrupt, but I don't think the creditor's would be best pleased to learn that he has let £7K slip by.
timendi causa est nescire
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| gally |
Posted - 14 February 2009 : 11:28:53
if it helps john in my case my business failed i owed to 2 banks and a few credit cards and i lost personally over £70k of my own money the interview lasted well over 4 hours and i felt dealt will fairly and firmly . i also handed over 1 account with £2700 in it as proof of no malice intended .i genuinly tried everything to keep going but once the main bank (creditor) started pulling the plug on overdraft (june last year) it became a loosing battle .i am off the opinion the or could see no fraud or deceit and did have empathy rightly or wrongly with my situation is this unusual ? |
| John |
Posted - 14 February 2009 : 10:44:12
Hi gally
now I understand a little more of your situation.
Firstly I must say it seems your examiner is very people friendly. How long he will wait for an offer of purchase of your BI is not known.
In the present climate the longer he waits the less he is likely to realise for creditors, and maybe nothing at all. That's great news for you but his duty is to the creditors so normally if there is equity and a family is in residence you would be allowed approx 12 months to purchase the BI or a forced sale may ensue.
If you are not restricted to the usual 12 month benchmark then I would have thought it inevitable that within the 3 years the OR has to deal with the property it will at some stage have no equity at all. If this happens, as you suggest, the BI could be purchased for the princely sum of £211.
Regarding the 3 year rule, the OR has to have taken steps to realise, but not necessarily completed the realisation of, equity or the interest vests back in the bankrupt.
In your case the OR has placed a charge on the property which constitutes initiating the process so the BI must be purchased at some stage.
What baffles me is if the charge is for £7,000, why would he accept less at any time. Because as sure as the value of the property will continue to decrease for now, it will also inevitably rise again whereby your £7K of equity is restored.
The charge has no time limit so I would have thought it would be in the creditors best interest for the OR to wait for as long as it takes.
But then who said the way that OR 's work is entirely logical.
timendi causa est nescire
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| gally |
Posted - 14 February 2009 : 10:22:17
john i am now really confused
at or meeting i was in equity and or after playing with calculator and explaining wifes interest in property etc said he was not going to sell the house but said a charge of £7000 would be placed on the house he did point out as house prices decline i could at some point arrange a third party to negotiate this even down to the magical £211 . forgive my ignorance but i have to ask once again my equity is still positive are you saying after 3 years all a third party will have to pay will be £211 |
| John |
Posted - 14 February 2009 : 10:08:32
Hi gally
any charge placed on the property at the time of the OR meeting could only be done against the non bankrupt spouses interest in the property.
The bankrupt's interest already, on petitioning the court, vests with the Official Receiver who will automatically place a restriction on the property at Land Registry preventing any charges being applied or any sale of the property unless with the OR's agreement.
The OR is not going to make such an agreement for the restriction to be lifted until they are in receipt of the funds to purchase the bankrupt's BI.
If there were good reason to have applied a charge to the bankrupt's interest it would have to have been done pre the declaration of bankruptcy.
Now the debt owed, which would have warranted the charge, is included in the bankruptcy and written off.
timendi causa est nescire
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| gally |
Posted - 14 February 2009 : 09:46:11
john a question
if at the time of or meeting an agreement to place a charge on the property so as not to force a sale 2 kids and a smashing wife in residence and the opportunity to buy back equity via third party if i do nothing will it revert back automatically after 3 years or will the charge on the property remain i think i know the answer but hope you may give me good news only myself on the mortgage and only me br |
| RHB |
Posted - 14 February 2009 : 08:00:12
Your daughter needs to see a solicitor & get a consent order drawn up to settle the finances now she's divorced. Otherwise her ex could rack up debt, go bankrupt again & next time lose the house. |
| John |
Posted - 14 February 2009 : 00:56:46
Hi
if the 3rd anniversary of the date he declared, or was declared, bankrupt has passed then the interest he previously had in the property returns to him.
It is very uncommon for this scenario to occur if there is equity in the property.
timendi causa est nescire
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| Niobe |
Posted - 13 February 2009 : 22:28:11
Hi and welcome.
I don't know the answer,but just wanted to welcome you and tell you that an expert will be along to advise.
The glimmer gets brighter all the time
Jan
xx |
