Hi just a quick question regarding BI, basically if I am in negative equity and someone was to buy my BI in a property, then would this mean that the OR has no interest in the property whatsoever, during OR after discharge from bankruptcy?
Has anyone been made bankrupt at Romford County Court??? Is the judge there nice?
Also who exactly are Official Recievers? I know they are appointed by the court to deal with your assets etc, but are the like a firm opf solicitors or something?
The Official Receiver (OR)is appointed by the Court to Administer Bankruptcy Orders. They are part of the Insolvency Service which in turn is part of the Department of Trade & Industry and implement govenment set insolvency legislation. A bankruptcy order is made in the local acount court and the Official Receiver attached to that County Court administers the bankrupts estate. The official receiver is noted on the deeds at the land registry on any property owned by someone on the date of the bankruptcy- this is called 'beneficial interest'(BI). This in effect prohibits anyone other than the OR from selling the property (realising the asset) if there is no equity available the OR will offer a third party to purchase the BI for £1 plus £211 costs - in effect you are paying £1 plus £211 costs to remove the OR's name from your property. It does not affect the 'ownership' of the property nor the mortgage - the individual must still maintain all mortgage and secured loan payments or rick losing the property.
Hope this helps
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
Beneficia Interest re property
Posted - 30 March 2009 : 14:34:19
