It all depends on the equity situation - if there is any equity in either property the OR will wish to realise the assets, either by having a third party 'buy out' your interests or by selling the property with the equity raised going to the benefit of your creditors. If there is no equity in the residential property you may be able to purchase the 'Beneficial interest' (remove the OR's name which is automatically registered on the property on the making of the bankruptcy order) for £1 plus £211 costs. With regard to the rented property provided the rent received is equal to or in excess of any mortgage payment, you may be able to keep the property provided you are up to date with mortgage/secured loan payments, but would again need to 'purchase' the beneficial interest.
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Don't want to hijack this thread but Melanie do you mean to say that even ith property you own but don't actually live in, and has no/negative equity and provided Beneficial Interst is purchased by a third party one may still be able to keep this property?
whilst in the right circumstances you may well be able to keep the investment property the trustee will very likely place a charge against it which can remain indefinitely. Thus any future improvement in the housing market which produces equity will be eaten up by the sum of your debts in bankruptcy, compound interest on the debts, the trustee's fees and compound interest on those too.
On balance then to keep an investment property will benefit your creditors and trustee before any benefit falls to you.
thank you for your reply. But will i get offerd to buy my husbands intrest on both houses?and do you think its worth him opening up a new bank account we have a joint account at moment?
Hi my husband may have to go bankrupt
Posted - 30 March 2009 : 14:27:42
