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Lynnk
Starting Member
United Kingdom
13 Posts |
 Posted - 03 September 2010 : 08:21:02
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| I am a discharge bankruptcy since july. Had a flat that was buy to let that insolvency put charge on. the mortgage comp went to court in Aug were we attended and we have now come to an agreement with the court and mortgage comp to keep it and we now have a tenant living there. My question is what happens with the charge after 3 years there is no equity in the flat but the tenant covers the mortgage. |
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debtinfo
forum expert
2826 Posts |
Posted - 03 September 2010 : 13:08:48
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| You need to speak to the OR straight away, does the mortgage company have an LPA receiver in place, if not the OR has the right to any rental income not yourself or the mortgage. |
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Lynnk
Starting Member
United Kingdom
13 Posts |
Posted - 04 September 2010 : 10:37:21
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Im not sure if there is an LPA in charge will have to find out but at the time of going through the bankruptcy there was a tenant in who moved out because of the OR getting in touch so at the time the mortgage company and the OR were not getting noting so the mortgage people were putting a charge on every month which went into arrears of about £2500 it wasn't until July when are bankruptcy charge was coming to an end that we then received letters from mortgage company saying they were taking us to court. We went to court and explained about the bankruptcy and the charge on the flat from the OR and the courts said it was between us and the mortgage company if we wanted to take the flat back on. The charge is still there and the tenants rent is going to the mortgage company.
When we went to court we were a discharged bankruptcy. Do we still need to tell the OR? |
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debtinfo
forum expert
2826 Posts |
Posted - 04 September 2010 : 11:42:42
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| Yes you do, if you have not bought the interest in the property back from the OR yet, it is the OR's right to have any money that comes from the tenant |
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Lynnk
Starting Member
United Kingdom
13 Posts |
Posted - 04 September 2010 : 12:58:25
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| Thanks for your help I seem to get more help from yourself then the OR so will get in touch asap. I have another question now and that is we have another property that was part of the bankruptcy and that was taken over by an LPA, I have been in touch with them and they told me they haven't heard nothing from the OR, I told them I have concerns because they have a tenant in the house but they dont cover the mortgage and it is £50 short each month so the charge is still on my name. I told them I dont want this happening and that was part of my bankruptcy which I wanted a clean slate from when my credit rating should be clear in 5 years but seeing as the mortgage is always short then I will always be in the red, they are reluctant to sell because the market is awful but were does this leave me and are the OR wrong in not forcing a sale because I seem to be in limbo with it all. Hope this makes sense. I feel I will never be clear of my debt although I made my seld BR to start a fresh and now I am discharged it is still ongoing. |
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debtinfo
forum expert
2826 Posts |
Posted - 04 September 2010 : 13:03:46
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| Ok if an LPA receiver has been appointed on this one then the desision rest solely with them. The OR wont do anything except include the profit or loss in the bankruptcy when the LPA receiver decides to sell. From your point of view it is not ideal but at least you know that any shortfall no matter when they sell will fall into the bankruptcy |
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Lynnk
Starting Member
United Kingdom
13 Posts |
Posted - 04 September 2010 : 13:50:35
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| Can we not force a sale because if they keep it for the next 5 years and then sell my name is always on the credit screen as been in arrears so in 5 years time I wont have a clean slate or if the OR say buy the interest back in the house which has no equity in it will we be still liable for the shortfall in the mortagae or will that be wiped of with the bankruptcy. |
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debtinfo
forum expert
2826 Posts |
Posted - 04 September 2010 : 17:30:32
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| If it is jointly owned then the other half may be able to force a sale but not if it is solely owned |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 12 September 2010 : 01:03:15
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In a buy to let jointly owned property, in which only one owner is bankrupt, then the LPA receiver (or if the OR appointed their own agent) is only entitled to half the rent, and the non bankrupt, joint owner can buy out the beneficial interest of the bankrupt owner, however they would not be able to use the low cost conveyancing scheme.
Big Al |
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debtinfo
forum expert
2826 Posts |
Posted - 12 September 2010 : 08:05:59
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| Actually the LPA receiver can collect the full rent or as much as to pay thir costs and the full mortgage payment, the OR can only collect half the rent minus essential costs |
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What happens with the charge after 3 years ?
