How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Alex J. Your Own Question

Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3557
Experience:  Solicitors 2 years plus PQE
13113900
Type Your Law Question Here...
Alex J. is online now

HelloMy wife and I are bankrupt. We have a few rental properties

Resolved Question:

Hello
My wife and I are bankrupt.
We have a few rental properties that are either in negative equity or very little equity.
We have kept up the mortgage payment since the order.
The trustees have just told us that the rents in the solely owned properties are part of the bankruptcy.
As most of our mortgages are on ‘plans’, as we had missed payments last year, if we miss just one payment then the property will be repossessed and then sold, and highly likely at a loss.
We make very little profit but owe home mortgage is paid by the rentals. This is in negative equity and therefore again if missed would be repossessed and sold for a massive loss.
We intend to buy back the BI with either family, friends or investors’ money, therefore we do not understand why a trustee would intentionally produce another creditor.
Can I ask what are my options?
Thanks you
Submitted: 3 years ago.
Category: Law
Expert:  Nicola-mod replied 3 years ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Expert:  Nicola-mod replied 3 years ago.
Hello,

I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?

Thank you for your patience,
Nicola
Customer: replied 3 years ago.

Hello


 


This is about the third question that has not been answered this month. Is there any reason why it has been hard to get a Professional lately?


 


Many thanks

Expert:  Nicola-mod replied 3 years ago.
Hello,

I have not been told anything by Professionals, I am sorry.

We will continue to look for a Professional to assist you.

Thank you for your patience,
Nicola

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question.

My name is XXXXX XXXXX I will assist you.

As you have rightly pointed out whilst you are servicing these mortgages then you are effectively stopping another creditor from being part of your estate in bankruptcy.

You need to start negotiating with the trustee, get a valuation of the property, show they are negative equity and ask the trustee to confirm how much it will cost to purchase the properties from the estate. In theory you should have all the power because if you stop servicing those mortgages then the number of creditors in your estate will increase.

When will the trustee be discharged? Has the trustee indicated how much he/she will accept? I look forward to hearing from you.

Kind regards

AJ

Customer: replied 3 years ago.

Many thanks for getting back me.


The valuations have taking place but the trustee is finding it difficult to get redemption figures off of the mortgagee. If I tell the trustees there won't be equity are they duty bound to listen or will they still go ahead and collect the rents?


They are aware I have family and friends to try and buy back the BI.


thank you

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

Until you buy those properties out of your estate, the rents belong to the trustee.

What I dont understand is why they want a redemption figure? Surely you will just continue to service the mortgage? Or will they be re
repaid in full?

Have you asked the bank for a redemption figure? If they wont co operate write to the bank and say that they are not entitled to "fritter away the equity of redemption". If they do not provide the up to date statement forth you could make a complaint to the Financial Ombudsman, but you would have to consider that carefully because you dont want to upset your relation with the bank.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

I presume they want the redemption figures so that they can work out if there is any equity in the property so they can work out the BI. If I don't get the rents in I will be unable to not only not service the rental mortgages but also our home as this is how I make a living.


Family, Friends and investors are certainly not interested in paying in full as this counter acts the reason of asking them to help as the mortgages are on low rates, something I see will not happen again.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

You will be entitled to the rental incomes when you purchase the properties out of your estate in bankruptcy but currently the properties are in the name of the trustee.

Have you given the trustee you last mortgage statements for example because that may help them to make a decision. You need to make it clear to the trustee that if he does not approve the sale soon, you will default on the mortgage and that will be detrimental to the creditors.

Have you tried making an offer?

Kind regards

AJ



Alex J., Solicitor
Category: Law
Satisfied Customers: 3557
Experience: Solicitors 2 years plus PQE
Alex J. and other Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.com/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.com/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.com/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice