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guinnessdiver
Junior Member
172 Posts |
 Posted - 03 September 2008 : 06:51:39
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| If a couple, running a shop in joint names, enter voluntary liquidation and the property is sold for considerably more than the figure owed to the mortgage provider, what happens to the additional monies realised at the sale? Is the profit used to pay back creditors and who is entitled to any remaining profit on the sale? |
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John
New Member
United Kingdom
73 Posts |
Posted - 03 September 2008 : 08:40:42
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Hi
I believe the profit would go to the trustee who, after collecting his own fees, would ditribute the profit pro rata amongst your creditors.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 03 September 2008 : 08:44:41
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John,
Im not sure here, but i think they wanted to know after all those have been paid and there is no one else to be paid, then what?
Sorry to jump on here, just sat here reading thats all. :)
Keep Smiling
Jo :)
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 03 September 2008 : 11:00:54
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Hi Jo,
Once all the creditors and Trustee have been paid back, any balance left over will go back to them.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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guinnessdiver
Junior Member
172 Posts |
Posted - 03 September 2008 : 22:28:36
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Thankyou for your responses everybody. This happened to my now ex wife and I ten years ago. My wife and I (and, effectively, our three young children), lost everything after buying the free hold of two shops in West Sussex and running and improving on them successfully for six years and then fighting for survival for a further six against three newly opened supermarkets in the area.
Unlike today, there was a complete lack of help or support then for people in our unfortunate position, or it was very poorly advertised.
The loss was akin to a bereavement and even now is incredibly difficult to discuss. I know we are not unique in our situation or feelings but I wish we'd had access to this sort of forum/information/advice, we's never had followed the route we sadly chose.
My question is based on the fact that we puchased the two shops for £89,000 in 1986 and they were sold several months after we surrendered them to the mortgage provider in 1997, having only four years left of a 15 year mortgage left to pay. I would like to know how to pursue any monies left over from the property sale after all debts were repaid. We owed approx 15,000 to all creditors at the time of voluntary liquidation.
Sorry this is a bit long winded but I can't think of any way to precis it.
Rob
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guinnessdiver
Junior Member
172 Posts |
Posted - 03 September 2008 : 22:31:58
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Hello Julian
Thankyou for your reply. Having re read it, would it be that any monies left over would automatically return to the person/couple who had declared voluntary liquidation? Or would one have to apply to have it returned and if so, to who?
Thanks
Rob
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John
New Member
United Kingdom
73 Posts |
Posted - 04 September 2008 : 00:09:00
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Hi
do you know how much was realised from the sale of the shops once the mortgages and other creditors had been paid?
Basically, how much are you chasing?
www.Bankruptcyhelp.org.uk
0800 078 9367 |
Edited by - John on 04 September 2008 00:09:18 |
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guinnessdiver
Junior Member
172 Posts |
Posted - 04 September 2008 : 01:09:50
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Hi John,
I don't know the figures yet and to be honest it's a subject that I've avoided even thinking about but I've been given the name of a gentleman who was appointed trustee(?)by the Brighton O O R and today I've emailed him with that question. I'm not even sure if he's the right person to ask it of but I explained my lack of knowledge and asked that if he is not the right person to ask, could he advise me who to direct it to.
I'm loath to approach the mortgage provider who had control of the property after I handed the keys back until I know all of my creditors were repaid from the sale. I was never informed if this was the case. Would I have been, if the funds from the sale had been sufficient to cover the debts incurred?
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Edited by - guinnessdiver on 04 September 2008 01:21:55 |
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guinnessdiver
Junior Member
172 Posts |
Posted - 04 September 2008 : 01:33:18
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For further information purposes this is a copy of the email I sent the Trustee, hope this will fit, sorry its so long...I think its catharsis.
Dear Mr *****,
Thank you for your very prompt response and please excuse my rather 'in the blind' attempt to contact you but I am unable to get access to a telephone during normal office hours so thank you for allowing me to contact you via email.
After you have read my questions you may wonder why I have left it this long after 'the event', so to speak, to contact you or any official involved in the liquidation process but I have to admit that even now, more than ten years later, it evokes a very emotional response which makes it difficult to talk about what happened. I can only compare it to a bereavement. It's said that adversity causes people to 'pull together' but I genuinely feel the problems and strain resulting from the situation led to the eventual breakdown of my marriage, some years later.
I left my work as an Offshore Oilfield Diver and my wife her career of 16 years in banking, sold our house in Hampshire and we purchased the free hold of two shops with an apartment above, in 1986, for £89,000 and threw ourselves enthusiastically into a massive career change and financial commitment, determined to make a new life for ourselves and our two year old daughter. We walked away almost twelve years later, beaten, dejected and ashamed, with our now three, very young children, in 1997.
My three little children are no longer little and it was their future that led me to thinking over what happened and I began to think about the sale of the two freehold shops and the apartment, that we had purchased in 1986 in West Sussex.
Having had a number of years of excellent sales and adding an off licence to one of the shops, we asked our mortgage provider, The Allied Irish Bank to change our term to 15 years from 25. All went well until a total of three new supermarkets opened, straddling the small town and decimating the trade. An all too common tale, as I'm sure you are aware.
However, when we approached the bank after a few years of struggle to revert to a 25 year term mortgage, they refused for reasons only they will know and approximately two years later, with my wife approaching a nervous breakdown and my having to seek work abroad to pay the bills, I rang my mortgage provider and surrendered the keys to the bank, still two months in advance with our mortgage repayments. I have since been told what we owed to our other creditors was a relatively small amount, though I did not consider it such at the time. It is not a period of my life I look back on with pride.
The only saving grace of the whole sorry affair, other than the courtesey and sympathy we received at the hands of the staff of the Official Receivers' Office in Brighton, was that I was still relatively young, unlike the majority of others shopkeepers I knew who met a similar fate, and was able to go back to work in my old trade.
Please forgive my longwinded approach Mr *****, but this leads me to my questions, how do I find out if there was any monies left over from the sale of the two properties, after all the creditors owed were rightly repaid, and if there was, who would hold it and to whom would it actually belong?
I am not familiar with the process of the sale of repossessed property but common sense dictates that two adjoined older properties, purchased in the mid eighties, modernised and improved structurally and cosmetically,in an area where there was extensive waterfront building and improvements being carried out, with an Off Licence facility added,(incidentally,when they were sold several months later, they reopened as one, large 'knocked through' Off Licence), would have been sold for considerably more than £89,000 in 1997/98, even as an empty units.
I am not on familiar ground here, Mr **** and I am not sure of the role of a Trustee so if I am asking these questions of the wrong person, I apologise but any guidance you can give will go a long way to helping myself and, though she is not yet aware of my enquires, my ex wife, to get some form of closure and perhaps allow us to pass on a little to our children at a time when the young need all the help they can get.
Thank you for your patience and I look forward to your reply,
Yours sincerely
Rob ******
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Edited by - guinnessdiver on 04 September 2008 01:38:25 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 September 2008 : 13:19:42
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Hi Rob,
All I can say is best of luck. However, you should prepare yourself for the possibility of getting nothing as it's likely all the remaining balance was taken in Trustees fees (they rarely get out of bed for less than £25k).
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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guinnessdiver
Junior Member
172 Posts |
Posted - 05 September 2008 : 00:25:42
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Hi Julian,
Well, I got the reply today and whilst it was in a sympathetic vein it bore no good news. It seems that the Mortgage Provider sold the two shops and apartment for an incredible £70,000 five months later so no one was repaid the money, that in all fairness, is their due. The outstanding sum is £25,000 and I cannot see any way I can repay that. Since my marriage failed, I now live with a new partner and her two young girls so I am working to pay for two young families.
Please do not think I am complaining or making excuses, I am acutely aware I am not the injured party here.
The main role of the Trustee was apparently to oversee the disposal of insurance and pension policies we'd had.
So I am no nearer to resolving this and it looks as though it is going to be a sword of Damacles over me for a very long time.
Thank you all for the advice but it seems the pain of reliving this has not been worth it, if anything, its worse.
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 05 September 2008 : 08:57:12
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Hi GD
I hope you get everything sorted out for you in the end. At least that bit of news is another thing less but by no means is it any real comfort.
We are all here for you, think of us as a virtual extended family, we are there no matter what and we will try our best to get you through it.
Keep your chin up :)
And Remember To Keep Smiling
Jo :)
"There is light at the end of the tunnel, if you cant find it get a brighter torch"
You can read my updated blog here:
http://debtfreejo.blogs.bankruptcyhelp.org.uk/ |
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who is entitled to any remaining profit on the sale?
