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jason1
Starting Member
United Kingdom
6 Posts |
 Posted - 20 December 2010 : 13:47:31
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Hi - I need some advice. In Jan 2008 I was declared bankrupt when my business failed after 17 years. I thought as the 3 years where coming up that all would be done and I could get on with my life. Today I received a B178 form stating the OR is trying to put restrictions on my home. My home is currently under a bank second charge for the debt that business had. When I met with the OR he said that he would not be going for my home for this reason and also I have 2 children and my son is severely disabled and the home has been adapted for him.
My question is when will my bankrupcy end and the OR go away, it says in the B178 I can appeal - should I do this? Any advice or help would be appreciated I have 2 weeks to contact the land registry or should I call the OR or will this make it worse? |
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debtinfo
forum expert
2826 Posts |
Posted - 20 December 2010 : 18:57:09
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OK are you dischrged yet, you should be, that is when the bankruptcy ends.
a seperate issue is how the assets that existed at the time are dealt with. Were you living in the property at the date of the bankruptcy order, Give the OR a ring and ask what they are doing |
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jason1
Starting Member
United Kingdom
6 Posts |
Posted - 20 December 2010 : 19:12:25
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| Thanks for the feedback - yes this is the house I was living in at the time of Bankrupcy.I am discharged as standard after 12 moths but the OR has just landed this on me today after 3 years? The bank has the charge so dont know what he is trying to achieve. I will call him i think.. |
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debtinfo
forum expert
2826 Posts |
Posted - 20 December 2010 : 19:34:14
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| ok then it will be a family home, That means that the OR has 3 years to do something with the property, all the time inbetween the house has been part of the bankruptcy estate, What is the equity position, is it solely or jointly owned |
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jason1
Starting Member
United Kingdom
6 Posts |
Posted - 20 December 2010 : 19:45:57
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| Yes it is the family home. It is jointly owned by myself and my wife (only me bankrupt). The house has I would say around £110k in equity, but it has been adapted for our son which concerns me. |
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debtinfo
forum expert
2826 Posts |
Posted - 20 December 2010 : 19:55:02
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is that £110K after the second charge has been paid or before
If it after then you can be sure that the OR will take steps to secure their share and so you eally need to contact them and find out what is happening |
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jason1
Starting Member
United Kingdom
6 Posts |
Posted - 20 December 2010 : 19:58:08
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| No the second charge is for £200k+ that I am trying to sort with the bank whom holds it. I dont know why he has done the B178 Application as the charge will be their for some time? |
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debtinfo
forum expert
2826 Posts |
Posted - 20 December 2010 : 20:03:44
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| ah well then no equity at all then, who knows why they have done it then |
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jason1
Starting Member
United Kingdom
6 Posts |
Posted - 20 December 2010 : 20:07:16
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| Thats what I thought - I think I will call him and see. Just very concerning you think you have done the hard bit and look forward to the full release after 3 years and then just before Xmas this! I will ;let you know what he says after we talk - again Thanks so much.. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 20 December 2010 : 23:47:49
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Hi Jason,
I dealt with a similar case to yours, in which had there been just the mortgage on the property there would have been substantial equity,however there was also a second charge on the property in favour of a bank relating to a property development, for about £250,000 which would have put the property in negative equity.
However, the bank was in the process of selling the development off which would have cleared the debt, and thus removed the second charge from the property, and so providing substantial equity, but wouldn't confirm this until the development was sold.
As a result even though this showed no equity on the assets and liabilities in the report to creditors, the OR felt that a meeting of creditors should be called, as it was likely that at some point, once the development was sold there would be equity to deal with. However, none of the creditors accepted the case, as a result an MP1 letter(invitation for a third party to buy out the beneficial interest) was sent as once the creditors had turned the case down, it could be done.
The result was that once the beneficial interest had been dealt with, then once the bank had realised its security in the development, the second charge would be removed and so creditors wouldn't be able to claim on the property.
So, having read your question, it sounds similar, so if there is a second charge putting the property in negative equity, why would the OR seek to put a restriction on it, and back in 2008 were you afforded the opportunity for someone to buy out the BI?
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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When will my bankruptcy end ?
