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pierrepont123
Starting Member
United Kingdom
3 Posts |
 Posted - 06 April 2012 : 12:20:45
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Hi, I'd be grateful for advice on following issues with my trustee. I lost my business in 2009 and was declared bankrupt in June 2010. My outstanding house mortgage was £186,000, house valued at £215,000, joint equity with my wife was £29,000 so my beneficial interest was £14,500. For several years my wife had made all mortgage payments as I had no personal income from the business . All mortgage payments are up to date thanks to my wife and daughter, who has shared all mortgage and household costs. Through her solicitor my daughter made an offer in Sept 2010 to the Insolvency Services to buy my beneficial interest. After calculating potential agency fees etc if they decided to sell our house, she offered £4000. Her solicitor also forwarded a cheque for £211 to Insolvency Services from her, which they required. He wrote "If this offer is not accepted kindly return the cheque." Her cheque was cashed immediately but she heard nothing from the Insolvency Services until Feb 2011 . By that time the house prices were falling drastically due to the weak housing market so my daughter withdrew her offer of £4,000 and offered £2000 as a gesture of goodwill to settle. The trustee agreed to another valuation Sept 2011. The house value had dropped to £205,000
1. The trustee refuses to base the equitable interest on the September 2010 mortgage balance and the more recent valuation figure of £205,000, which I believe is more realistic and of course reduces the equity.
2. The trustee agreed to grant 50% credit for my daughter's mortgage contributions BUT does he have the right to insist on 50% credit against the JOINT equitable interest? After all, well over half the equity belongs to my wife for her continued payments all these years.
3. What do you understand by the following wording in a letter written by the trustee: "I am assuming that .. (my daughter) is not claiming any equitable interest"? Is equitable interest the same as beneficial interest? THANK YOU
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debtinfo
forum expert
2826 Posts |
Posted - 06 April 2012 : 12:52:52
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| The answer to all these questions is that he does not have to allow anything, the trustee asks for a price, you either accept or decline,( ie you would not go in to asda and say wheat prices have fallen 6% oer the last year therefore you MUST reduce the price of the bread, they offer a price and you either accept, decline or counter offer) if you decline the trustee considers their options which could be up to selling the property, if they decide to sell the property they must get a court order at which point you can try and argue your point with the judge. However recent case history in the high courts has been that if a couple are married and co own a property then it should be split 50:50 unless there are extremely exceptional circumstnaces which i dont believe in my opinion that you have from what you have said. For instnce if she had never worked and been a stay at home parent she would still be allowed a 50:50 split as being married you essentially agree to share everything |
Edited by - debtinfo on 06 April 2012 12:53:48 |
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pierrepont123
Starting Member
United Kingdom
3 Posts |
Posted - 06 April 2012 : 13:29:35
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| Much appreciated information. Could you perhaps comment on whether the trustee should take into consideration the costs he would incur by selling our house and deduct these from my beneficial interest, when he considers any counter-offer we make? Thank you. |
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debtinfo
forum expert
2826 Posts |
Posted - 06 April 2012 : 13:41:04
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| again he does not have to, but he wants to get the best price, so if your offer if more than what he will likely get by selling the property during which costs would have to be paid out of both the trustee and your wifes share then he may well accept |
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pierrepont123
Starting Member
United Kingdom
3 Posts |
Posted - 06 April 2012 : 14:08:51
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| Thanks very much again for useful advice! |
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| bankruptcyhelp.org.uk Forum |
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Hi, I'd be grateful for advice on issues about beneficial interest
