| Author |
 Topic  |
|
|
Jeepthang
Starting Member
6 Posts |
 Posted - 17 July 2012 : 16:31:27
|
Hi there
My wife was made bankrupt in July 2010.
We own a joint property but there was little equity in the property as part of the investigations and it remains jointly owned by us. My wife was discharged from bankruptcy in July 2011. We are now thinking of selling the property as there now appears to be approx £40k worth of equity (once all the fees have been paid).
My question is: Can my wifes Trustee in Bankrupty still grab her half of the sale proceeds or whether that "right" has now expired. If it has not expired, when will it? Is this the 3 year rule?
Thanks in advance for the help. |
|
|
Viki.W
forum expert
United Kingdom
2211 Posts |
|
|
Jeepthang
Starting Member
6 Posts |
Posted - 17 July 2012 : 18:09:14
|
| Yes it is |
 |
|
|
Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 17 July 2012 : 18:16:10
|
Did you buy back the beneficial interest? I presume not, then the OR has 3 years to deal with it.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
|
|
|
Jeepthang
Starting Member
6 Posts |
Posted - 17 July 2012 : 18:17:46
|
| I applied to buy back the beneficial interest but was advised that the rules had changed and that it was not possible to do so. Is this correct? Did the rules change? |
|
|
|
Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 17 July 2012 : 18:22:09
|
You can no longer buy back the BI for £1 if in negative equity, but they are open to offers. Usually £1000 plus fees.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 17 July 2012 : 18:22:14
|
| Not the rules but the OR's own guidance, the rules are and always have been (since 2004) that the OR can hold the interest in the property for up to 3 years, so if you have not bought it back yet then it remains with the OR |
|
|
|
debtinfo
forum expert
2826 Posts |
Posted - 17 July 2012 : 18:23:36
|
| Hi Jeepthang, as a side note can you think if any reason why there was no equity 2 years ago but there is £40K equity now, it does seem a liitle odd |
|
|
|
year 2029
Average Member
590 Posts |
Posted - 17 July 2012 : 20:33:37
|
Just to add, the OR would normally look at a property that they have interest in, at the 2 year and 3 month mark.
They will also have a restriction registered with Land Registry.
--------------
Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
|
|
|
Jeepthang
Starting Member
6 Posts |
Posted - 18 July 2012 : 09:16:51
|
Re DebtInfo's question, I had a massive penalty clause in the mortgage a couple of years ago (approx £20,000) in connection with any early redemption.
Is it worth contacting the OR now and see if they would reconsider my offer to buy the beneficial interest or is it highly likely they will probably contact me a at the 2 year and 3 month mark i.e. October 2012? |
|
|
|
year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 09:37:41
|
In short, the OR is likely to want your wifes share of anything that would be realised.
You could ask to buy out her BI, and you would need the OR's permission to sell anyway.
--------------
Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
|
|
|
Jeepthang
Starting Member
6 Posts |
Posted - 18 July 2012 : 10:15:31
|
| Is that correct? Before I put the house on the market or take any subsequent offers, I would have to ask for the OR's permission to sell? |
|
|
|
year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 10:17:45
|
If you didn't initially buy out the BI in your property, the OR should've placed a restriction with the land registry.
Do you remember if this was done?
--------------
Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
|
|
|
Jeepthang
Starting Member
6 Posts |
Posted - 18 July 2012 : 10:27:06
|
The OR has placed a restriction on her half of the equity but I presumed that they would just automatically take their half (from my solicitors) when the property was sold rather then me having to ask their permission to sell.
I guess the best solution is not to put the house on the market until after their restiction has expired and hope they don't pick up that the restriction is in place. |
|
|
|
year 2029
Average Member
590 Posts |
Posted - 18 July 2012 : 11:15:16
|
Maybe permission was the wrong way for me to have worded it.
The restriction is there so a sale can't go ahead without the OR being informed.
--------------
Views expressed are my own personal views, based on what has happened during my own BR process unless otherwise stated.
Professional advice should always be sought. |
|
|
| |
Topic |
|
My wife was made bankrupt in July 2010. We are thinking of selling jointly owned property.
