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indy2005
Junior Member
458 Posts |
 Posted - 22 May 2008 : 19:31:58
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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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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 22 May 2008 : 20:24:07
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Hi Indy,
Would you like me to give you another call to explain in greater depth with regard to your above questions?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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indy2005
Junior Member
458 Posts |
Posted - 22 May 2008 : 21:04:31
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Please! I am unsure of the process of negotiation. I dont want to play hard ball and then find myself in court the next day.
Do you have the number still? or can I email you with it privately?
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melanie_giles
Senior Member
1191 Posts |
Posted - 22 May 2008 : 21:53:37
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Just one point from me - with regard to the creditors who were repaid. Were these debts incurred by you and just for you, or did your wife benefit from them in any way, even to the extent that you were able to continue to draw a salary from your business which was being propped up by unsecured credit?
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 |
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indy2005
Junior Member
458 Posts |
Posted - 22 May 2008 : 23:21:30
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Hi,
65K gambling to credit cards and loans. Wife saw nothing of this money.
Gambling became public knowledge, drew out 65K in joint mortgage to pay my debts, remortgage in joint names. 65K into joint account in April 2006, April 3rd 2006 money distributed to my creditors. No benefit to wife, unsecured debt in my name.
I ran up further debt, against same creditors gambling.
March 2008, house transferred to wifes name when came off fixed rate deal and declaration drawn up by a solicitor to explain the transfer was to recognise my lack of interest in the property, due to withdrawal of equity in 2006.
Regards
i
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melanie_giles
Senior Member
1191 Posts |
Posted - 22 May 2008 : 23:50:27
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My gut feeling in that case is that she will have a good claim, especially as you have the benefit of a propertly drawn up legal agreement.
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 |
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indy2005
Junior Member
458 Posts |
Posted - 23 May 2008 : 01:09:01
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Thanks,
Mum is waiting in the wings with 20K, but I obviously dont want to use it as I would only have to pay her back after the IPA completes (so thats 5 years paying back).
Nice to know its there if things get hairy, but if we have a good case to make a 5K "nuisance" payment then this would obvioulsy be better.
I think Paul may be discussing my case with you. He mentioned a F&F IVA settlement in bankcruptcy may be an option, which is something I had never even heard of. I guess these may work as creditors know you are serious about bankruptcy as you have already done it...its not an idle threat!
i |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 23 May 2008 : 13:07:24
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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 |
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melanie_giles
Senior Member
1191 Posts |
Posted - 24 May 2008 : 01:05:06
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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 |
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indy2005
Junior Member
458 Posts |
Posted - 24 May 2008 : 01:07:24
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Thanks all,
Are we talking about an FTVA here....? |
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melanie_giles
Senior Member
1191 Posts |
Posted - 24 May 2008 : 22:07:20
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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 |
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indy2005
Junior Member
458 Posts |
Posted - 25 May 2008 : 13:43:13
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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 |
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melanie_giles
Senior Member
1191 Posts |
Posted - 25 May 2008 : 15:42:56
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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 |
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indy2005
Junior Member
458 Posts |
Posted - 25 May 2008 : 22:58:31
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| 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%? |
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melanie_giles
Senior Member
1191 Posts |
Posted - 26 May 2008 : 01:08:59
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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 |
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indy2005
Junior Member
458 Posts |
Posted - 26 May 2008 : 10:38:05
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OK,
Thanks. I will accept my fate...! |
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Topic |
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Equity of Exoneration
