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Hello, welcome to the website. My name is Tony, I can assist you with this.
If you become bankrupt and have equity in your home, then it's likely the property would be sold to pay the creditors as much as possible from the equity.
If the sale now pending is instigated by the bank, then going bankrupt will not affect this.
The court issues a sale
based on the fact a debt was not paid
when my husband was working as a sole trade
Was it the mortgage lender's debt? Or somebody else?
personal debt relating to a property he was managing
when he was working as a sole trader
the costs have spiralled as no action has been taken
the property was let by my husband the landlord was not happy with the propert at the end of the lease
he invested some funds making the place good
she was not happy with the repair and got her own quotes
however she provided no receipts for the work
I see. Okay. If he becomes bankrupt now, the house is still likely to be sold if there is equity, unless the spouse (you) purchases the equity belonging to the husband.
however this has been ongoing since 2009
The key thing is that things have moved well past the initial dispute. This is now about enforcement.
His business does not generate the funds required. So wondering if Bankruptcy would be the best option
So your husband becoming bankrupt is an option and if you buy the equity and pay it to the trustee, then this would avoid the house being sold. So long as you keep up the mortgage payments, nothing concerning the house would change.
how long does a force of sale typically take
Could he get 3/4 of his creditors (by value) to agree to accept something less, and enter into an Individual Voluntary Arrangement, to avoid bankruptcy?
I will explore this option however he signed a consent form and not made payment in 2 years.
If so, it's worth looking into this. A useful website is this (it explains IVAs more): http://www.debtadvicefoundation.org/questions/what-is-an-iva
Not sure they will agree based on past track record
Okay. In answer to your question - a forced sale can take about 2-3 months, as they have to market the property and find buyers etc., but a court order can be granted within 6 weeks of an application being made.
He doesnt really earn enough to pay much
does this matter as realistically it will take a significant amount of time to pay off. He is already in a debt consildation plan which he struggles to meet
okay then bankruptcy might be an option here.
eg he could only pay £100 per month if that
To do an IVA we would need a solicitor and incurr further cost
Or an insolvency practitioner.
Where about in the UK are you?
the business is in woolwich south east london
Okay, why not give these people a call tomorrow: http://www.rjcfm.co.uk
See if they can assist in considering an IVA. I'm sure they'll chat with you to work out if its the best option once they know all the debtor/creditor information.
ok if we were to go into iva
is there anyone you can recommend
I've just given you a link for somebody to speak to.
to assist with negotiating a reasonable sum
thats for insolvency right ?
Same thing - they'll do both.
Is there anything else I can assist with?
Im conerned that there is a force of sale order on the property
are these people solicitors ?
or debt management advise
Not solicitors - insolvency practitioners - they're more specialised than solicitors for dealing with the scenario you're in.
They're a separate specialised profession. Not just regular debt advisors.
i was advised to seek council from a civil lawyer
are you suggesting to go with rjc first ?
Yes, speak with an IP like RJC first.
will do that
Okay. Hope that goes well. You can always ask me anything else once you've spoken to them if you wish to. For now though, is there anything else I can assist with?
no will give them a try thanks
will let you know if i have any questions
Okay - thanks very much.
have a good evening
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