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Alastair10538
Starting Member
United Arab Emirates
7 Posts |
 Posted - 24 January 2011 : 21:20:52
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Hello, I have a query with regard to my ongoing attempts to buy back the beneficial interest in the property I "own"
The quick facts:
- Bankrupt August 2009, 90k of unsecured debt, no secured debt
- Discharged August 2010
- Request made to purchase back BI in August 2010.
- My understanding was that it was 1 pound plus legal fees
- My property has about 25k of negative equity (and I have sent recent valuations proving this to the OR
- I received a letter today from the OR
- They are now saying that the scheme to buy back BI in a property with negative equity no longer exists, and "an offer is required for a value which is clearly in the interest of creditors, which is likely to be for an amount which exceeds £1000"
So they basically want me "to make an offer".
There is no value in the property, because of negative equity (value is 180-190k, outstanding mortgage 215k).
So my question is, do you have any advice or recent experience, or anything you can share with me on this new regulation and how I should proceed?
Should I just make an offer of 1000 GBP and see how they respond?
Any advice welcome.
Thanks
Alastair |
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debtinfo
forum expert
2826 Posts |
Posted - 24 January 2011 : 21:36:41
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| You can make an offer if you wish, also it is not a new regulation just a new guideline. This means that the Actual rule is the same that if the Trustee does not do anything within 3 years of the bankruptcy then you will get the property back automatically, So the key consderation is do you think there will be any equity to make the OR do something before August 2012 (the 3 year point) |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 24 January 2011 : 21:41:33
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Hi Alistair,
my understanding from my previous boss, is that although the nominal £1 to buy back the BI has now finished, they would have to consider what they term a reasonable offer (when in negative equity) of about £1,000(depending on how much neg equity). So it would be worth making that proposal, but with 18 months to go before the 3 years is up, you would have to consider whether it was worth it, as would the property appreciate in value by £25,000 in 18 months? a point to ponder, the other experts to the left may have other opinions.
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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debtinfo
forum expert
2826 Posts |
Posted - 24 January 2011 : 21:53:39
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| Snap big al |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 24 January 2011 : 23:38:30
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The almost instant change in "interpretation " of the rules for IPA's and Beneficial Interest transfers is really quite obscene.
I know of many people that have been active in chasing the OR offices to purchase the BI back since April last year but because of slow responses, short staffed offices etc etc people have missed their window of the £1 BI purchase.
All in an attempt to retain more money for the Insolvency Service as it is unlikely to go to the creditors.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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New rules on Beneficial Interest
