I posted the following message on here in Feb and have pasted it below to provide some background on my situation:
"Hi, We have recently been discharged from bankruptcy. We had a number of properties ( personal and Buy to Let ) that formed part of the bankruptcy estate that we no longer want any part of. We are still getting calls/letters from some of the mortgage lenders quoting how much we still owe them in missed payments/charges etc and one council is chasing us for council tax.
The council is saying that because the properties are still in our name and haven't supposedly been repossessed ( even though all the properties are now managed by the Property Receiver and have been since before we went bankrupt ) we are liable for the council tax on the two empty properties.
My question is: what is the process for dealing with properties once you have been discharged in terms of possession, the lenders etc. and how long will it take and under what circumstances will they officially be repossessed ( all properties are in negative equity ) ? Thanks."
I have now had a few conversations that I need some help on.
1. The Official Receiver is saying that any Council Tax monies owed on our BTL property ( or any property I suppose ) AFTER we went bankrupt have to be paid to the council. In fact they said I should seek legal advice from an independent party to determine our liability but if they property is in our name then basically we are liable for the council tax.
2. The mortgage provider ( Northern Rock ) has told me that because the properties are in negative equity they will not officially repossess the property until the value increases to the point where it is worth their while to try and sell it to minimise their loss. This can take up to 6 years and all that time the properties remain in our names and yet we have absolutely no control over the running of them.
3. The council themselves - they are saying they don't care what the circumstances are - as long as we're the "official" owners of the property we are liable for any council tax after the bankruptcy period has started. I stress after the bankruptcy period because they don't have to wait for the normal 12 month bankruptcy period before they can claim against the property - any money that is owed after you are officially declared bankrupt they can try and claim it from you.
I really feel like I am stuck in the Twilight Zone as I am being asked to pay for something related to a property I now have no control over.
Any advice would be appreciated - I must stress that Reviva UK ( brilliant people by the way ! ) are also helping me with this but I'd like to hear from anyone who is or has been in a similar situation. Thanks.
i was under the impression that there was a special band ( i think it was Q) for properties that belong to people who are BR and the property has been handed over to the OR and there is no charge hopefully someone will remember and confirm this
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman) RevivaUK and Paul Johns helped me through it all i can't recommend them enough!!
There is a special band and you should speak to the revenues Division at the council.
Richard
quote:Originally posted by chester2005
i was under the impression that there was a special band ( i think it was Q) for properties that belong to people who are BR and the property has been handed over to the OR and there is no charge hopefully someone will remember and confirm this
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurhman) RevivaUK and Paul Johns helped me through it all i can't recommend them enough!!
Council Tax for BTL - Post Bankruptcy
Posted - 08 March 2010 : 17:35:17
