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Worried Essex
Junior Member
United Kingdom
193 Posts |
 Posted - 05 August 2008 : 10:15:40
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Hi - I declared myelf bankrupt on 24 June, following the failure of a business, where I had to act as personal guarantee. I have been told by the OR that the finance company who were owed the most our of the BR wish to appoint their own trustee. However, I have virtually no assetts and only limited equity in our family home, to which I want my wife to buy my share for £1 plus the legal costs.
If they do appoint their own trustee to manage by BR, what are the disadvantges and can they block a transfer of the home? |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 05 August 2008 : 10:20:25
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Hi
They can nominate a Trustee for appointment, and if they secure 50% in value support of your creditors they will be appointed.
The Trustee would be able to prevent the transfer of the home, and is able to wait the three years before starting any proceedings, whereby the position regarding equity may have changed.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Worried Essex
Junior Member
United Kingdom
193 Posts |
Posted - 05 August 2008 : 10:21:31
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| There is no equity in he home right now, so can they still block the transfer? and if so, on wha grounds? |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 05 August 2008 : 10:23:45
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A Trustee would be able to block it on the grounds that they can wait the three years and gamble on property prices increasing, thereby providing a better return to creditors.
It may be accademic as a Trustee may not be willing to take on a case that appears to have no assets.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Worried Essex
Junior Member
United Kingdom
193 Posts |
Posted - 05 August 2008 : 10:26:54
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| OK, Now I understand. So in 3 years times if property values have not lifted, they could not block the transfer? is that corret, or if they have, they could demand the 50% of my equity in the uplifted value be paid to transfer my interest? |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 05 August 2008 : 10:39:44
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I they do not commence proceedings for possession within 3years of the order, the property automatically revests in you and so transfer is necessary.
If the property has increased in value and so produced an equity situation they would require 50% to transfer the property.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Worried Essex
Junior Member
United Kingdom
193 Posts |
Posted - 05 August 2008 : 10:47:52
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| Thanks for your usual helpful assistance!!! |
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Topic |
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Appointing a trustee
