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markm
Junior Member
United Kingdom
115 Posts |
 Posted - 19 February 2009 : 20:51:35
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My wife was made bankrupt 4 years ago due to an unpaid tax debt, for an un paid tax return in 1998.we have no other debts and a 25k mortgage on a 100k house,I work away from home quite a bit and was home in may last year when i found a letter saying the house was going to be sold due to the bankruptsy, this was the first i had herd of it.
I knew nothing about br and went in to shock.
I went to see the trustee who told me the debt was about 20k which had risen from 2k three years before. she told me that i had to sell the house or remorgage.
The following week the trustee rang me to tell me the debt was 30k and that there was somethigs missed of the first bill, all in all it was 10k for tax and 20k for cost''s.
I said i would try to remortgage.
She put me in touch with a specalist in remortgages for br people.
in the mean time she rang the specalist and said to anule the br it would cost 36 k allin!
when i got the mortgage cost and monthy repayments it was going to be 700 a month and i would have to restart my mortgage, i was twelve years in to my mortgage and it was 200 a month.
The trustee told me that i had a year to decide what i was going to do.
In the meen time mywork slide down and i was very quiet, wth all the cridit crunch stuff!
i ended up working in holland. on 4 of december last year my house was took off me to be sold, the locks were changed and my wife and chilidren where homeless.
The trustee took the house from us while i was working away. my wife manged to rent onother house for now, and moved the contents.
The trustee told me they have full controle of the house and stop paying the mortgage as it was frozen and they had the house insured.My bank has just called asking why for the last twomonths i have not paid my mortgage and say they have no info on any of this happening!
I rang the trustee and she told me if they call again to tell them tocall her, the bank say that it is not right and should not have happened!
where doi stand |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 19 February 2009 : 21:15:02
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Hi
unfortunately the house has now gone UNLESS you can arrange the remortgage to settle the debts. The trustee will still allow this but remember that as each month goes by the costs will continue to increase.
When the house is sold any surplus after mortgage and costs will be forwarded to you, however you may be better served to secure the mortgage and move forward.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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John
New Member
United Kingdom
73 Posts |
Posted - 19 February 2009 : 22:19:11
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Hi
I'm very sorry to read of the extremely difficult time you are having through no fault, or debt, of your own.
I'm afraid this kind of situation arises all too often when certain private sector trustee's are appointed. It is no coincidence that the total including fees amounts to £36K.
Basically there is an estimated £75K of equity and the trustee has clearly set out to claim virtually all of your wife's interest in the property.
How on earth a trustee can justify charging this level of fee is beyond me, how much work and related costs could possibly have been incurred with a single creditor.
Unfortunately the fee the trustee can charge is not capped except by the value of your wife's asset and quite clearly there should be a capping process.
Your only chance of paying less is by proving that your wife's interest is less than 50%.
Who paid the original deposit?
Who had the greater income and therefore contributed the greater proportion toward the upkeep of the household in the duration, to date, of the mortgage?
Has your wife always been in work?
The answers may give you a case to argue that your interest in the property is greater than your wife's.
timendi causa est nescire
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Edited by - John on 19 February 2009 22:23:01 |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 20 February 2009 : 18:46:57
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Thanks for the replies,
Dont think in this climate with work i could take on a brand new mortgage of £750 a month.
My house was valued at £114000 last year, the trustee as put it on the market for £89500 and she called me today to say she had a cash offer of £70000 from someone, she said what did i think? i said no way! but she said she has got i obligation to tell the O R that an offer is on the table!
When i found out last year of the full amount of the debt i asked if i could make an percentage offer as i could not pay the full debt! she said that it had to be 36 k and that was final as we had the equity in the property to pay the debt, but now they are taking offers for my house.
If they sold for 70 k by the time everything was sorted they would only get 25 for the debt!
How can this be?
They my force me to sell my house at a massive reduced rate.
So why cant i pay 25k and keep my house, they have messed up my mortgage too, i'm now getting charged late payment charges too!
What will happen with the rest of her debt if they dont get the full amount?
When i had a meeting with the trustee she even said to me if we had loads of debt and a massive mortgage they would have squashed the debt!But becouse we have no credit cards, loans, or any other debt and plenty of equity to cover the debt they was not worried, until the housing market started dropping. then they pressed for the possesion of the house, they could have called me, she had my mobile phone number and told me. i would have agreed to put the house on the market straight away. insted they changed the locks while i was at work, my kids were at school and my wife was at the court trying to get a bit of time to sort things out.
They even turned off the electric and let my childens tropical fish die.
Sorry to unload all my problems, just cant belive that they could do all this for an estameted tax return of 2k ! my wife was'nt even self employed at the time!
she was going through a bad time and did'nt want to worry me. when she was made bankrupt she did'nt even know what it ment. she thought that it ment she did'nt have to pay it!
To answer you questions john we both payed the deposit and she wss not always working and i always payed the mortged, i asked the trustee about this when i first meet her, she said that if i started to be un co oprative that they would not give us the year to sort it out and would press for us to be evicted due to being un co oprative tennents!
Can you belive it? |
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John
New Member
United Kingdom
73 Posts |
Posted - 20 February 2009 : 22:30:50
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Hi
you should be aware that the trustee is not permitted to take any part of the value of the property that belongs to you.
If we assume for the sake of arguement that whatever the equity figure is it is shared 50/50 between yourself and your wife. If the trustee wishes to sell at £70K, the costs will be circa £2000, the current mortgage is £25K leaving a balance of £47K 50% of which belongs to you.
Therefore if you were to secure a new mortgage of £2K + £25K + £23.5K (£50.5K) you could make the same offer as is already on the table and I'm of the view that the OR would accept.
As far as the mortgage is concerned, with a market value of £89,500 and a required mortgage of £50.5K then the loan to value percentage requirement is around 56.5% which I think you will obtain relatively easily with no debt yourself.
As far as affordabilty is concerned, interest rates have fallen dramatically since last May and although I am no mortgage broker I estimate a repayment mortgage on that sum to be less than £500 per month.
You could call the OR, advise them of the £70K offer and that the trustee seems keen to accept and then make the same offer and ask for max 6 months to arrange the new mortgage.
From what you have posted you could probably argue your wife's interest in the property below the £23.5K that would be on offer too.
timendi causa est nescire
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sonia
Starting Member
28 Posts |
Posted - 21 February 2009 : 06:43:26
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Hi markm,
If you believe the trustee has been unfair then you can put in a complaint against her/him. They are not above the law. My husband was made bankrupt by a dodgy landlord and the trustees costs were sky high. we had to remortgage to pay trustee off. Since then I have been doing a lot of my own investiagtion and have found out that the trustees costs are not true as he has claimed and I have put in a official claim against him and he is being investigated along with the creditor.
Your wife's debt of £2k up to however much is in my eyes 100% fraud. That's my personnel opinion, anyone don't like it tough . How can this government justify such a disgusting figure, for such a small debt they charge such a huge fine. Legalized stealing, no wonder why this world is upside down today, because the law is a corruption in itself, and what is the average guy with 2.2 kids suppose to do, #### to them all.
Good luck markm, |
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John
New Member
United Kingdom
73 Posts |
Posted - 21 February 2009 : 13:24:47
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Hi Sonia
I have to agree it's scandalous that some private sector trustee's abuse the system in this way.
I am part of a firm which offers various services to clients in financial difficulty and of course in order to make a living we charge our client's a fee. I am well aware that there are firm's out there claiming to be of similar type that are somewhat less than ethical which give the rest a bad name.
What I find difficult to accept is that despite the fact that the client will always have benefited to a greater to degree than the sum of our fee, we are often frowned upon and classed as ambulance chasers.
Yet some private sector trustees treat the bankrupt with contempt, abuse the system which like most is flawed, and yet take refuge behind the formal qualifications acquired in order to enable them to fulfill the role and thus handed to them on a plate by the insolvency service.
Until such time as the powers that be look into the situation, that which appears to be akin to legalised extortion will sadly continue.
timendi causa est nescire
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 22 February 2009 : 00:26:39
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Thanks for your replies and kind words.
I think i am going ask for a meeting with the trustee on monday and see exactlly what they want and would except. i will keep in touch and let you know what happens.
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 22 February 2009 : 11:47:10
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I can't offer you any advice, but good luck on Monday, I hope you can get this sorted out x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
20 IPA payments made, 16 to go - on the home straight! |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 01 March 2009 : 19:02:51
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Just to keep you informed, i am going to the building society tomorrow to get some more advice.
i spoke to the trustee last week, it seems that they want to except the 70k cash offer from someone for my house. this means that when all costs and charges are taken, the trustee will only get 18k for the debt! i said if they are prepared to except that then i will raise the money and pay it myself so i can get my house back.
they said that they will have to have a meeting with the OR. i asked if i can be at the meeting, they said that they will ask the OR and let me know!
can they sell my house for that figure, even if i disagree? and if i agree to pay the 18k they would get from the sale. the trustee's under study seams to think that becouse it was a cash offer that he would rather except the other persons offer!
any help would be welcomed greatly.
Mark
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John
New Member
United Kingdom
73 Posts |
Posted - 01 March 2009 : 20:39:54
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Hi Mark
the trustee and or the OR may or may not wish to plump for a cash purchase. If you stand your ground, and if you are confident of raising the £18K they will have to get authorisation through the court for a forced sale and with an offer from you as joint owner that is equal to the cash offer tabled I do not for one minute think the court will allow it.
The court does not take anyone losing their property lightly even if trustees and OR's seemingly do. If you can get an offer in principle, in writing, from the lender my money is on you.
Please let us know how the meeting with the lender goes tomorrow.
All the best.
John White
England Jackman & Spacey |
Edited by - John on 01 March 2009 20:41:26 |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 01 March 2009 : 21:12:23
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will the trustee have to tell me that it is going back to court again to get permission to sell,its just seams like the trustee does what he wants, then i find out about it later.
even when they got the locks changed i did not find out till after! i know that i work way from home, but he had my mobile phone number and did'nt even call me.
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John
New Member
United Kingdom
73 Posts |
Posted - 01 March 2009 : 21:40:43
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Hi
I would concentrate your attention on the OR, the trustee works for them in effect. Insist, in writing, that you know all that is going on.
I'm still perplexed as to how your wife was forced from the property if the mortgage was being paid and a forced sale application had not been granted by the court.
John White
England Jackman & Spacey |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 01 March 2009 : 22:24:52
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i'm not sure that my mortgage lender will help me, as i have not paid the mortgage since jan this year due to the trustee being granted possesion and him telling me that my mortage had been frozen, and that i need not pay it. but my mortgage lender rang me last week to ask why i had not paid it, they said they knew nothing about it!.i'm going to see them and exsplain my situation.
does anyone have any good finatual advisors they could recermend in the sunderland area? |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 01 March 2009 : 22:26:03
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| ps many thank for all your help and time John. |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 02 March 2009 : 11:22:27
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hi all, just to keep you up to date
been to the building society this morning, i'm not sure they will help me, they said that i have to go back tomorrow after noon to speak to the mortgage advisor.
i called the trustee to tell him, but the case is being handled by his understudy now. i asked for a meeting to discuss the situation, she said that the trustee is more in favour of the cash offer ad will only meet me if i have writtern proof of a offer in principle. they said they will delay for a day or so till i have seen the building society.
does anyone have any advice in what i should do or any financial advisor numbers who deal or have exsperince in this sort of thing, i feel as though time is really against me.
thanks
mark |
Edited by - markm on 02 March 2009 13:13:34 |
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My wife was made bankrupt 4 years ago
