This is gewtting more and more worrying for myself and, potentially, my wife if she goes bankrupt shortly.
I have been in touch with the Insolvency Service and they seem to think that if, such as in our case, you have taken out a mortgage on a more expensive property after selling your cheaper, having debts at the time and then finding a few months later that you can no longer afford the more expensive property then going bankrupt that it is a classic example of grounds for a BRU/BRO. Even though your mortgage offer was on the correct income details at the time if your income falls a bit later and you go bankrupt you could be in trouble with the OR for taking out the mortgage in the first place. I suppose the OR would not be persuaded by any protestations that the mortgage broker concerned had oversold you to the mortgage company or you did not understand exactly what you were letting yourself in for he would stil consider it reckless and ask the court for a BRO (or offer a BRU). Does anyone know of any examples where bankrupts have overreached themselves in a house sale and purchase of a more expensive property and shortly after gone bankrupt?
I can't find any exact similar circumstances in a bankruptcy restrictions search.
I have heard that not every bankruptcy gets investigated by the OR and that one person might get 'awarded' a BRO for doing not much wrong whilst someone else does a lot more wrong and gets discharged after 12 months!
I have heard that not every bankruptcy gets investigated by the OR and that one person might get 'awarded' a BRO for doing not much wrong whilst someone else does a lot more wrong and gets discharged after 12 months!
Yes there is truth in this, it would depend on the relationship with the examiner as they are the person who would suggest to the OR that a BRO/BRU should be put in place with a particular BR that is when the OR would investigate.
Worried about BRU/BRO
Posted - 28 March 2008 : 16:47:39
