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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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i went bankrupt in September 2012,i own two properties, one

Resolved Question:

i went bankrupt in September 2012,i own two properties,
one I live in yhe other I rent out.
equity in live in property negative 20 000 pounds

equity in rented property 70 000 pounds.

if I sell rented rented property now will INSOLVENCY OFFICE use the charge against the
house and take the 79 000. I went bankrupt for 80 000 pounds.

chris waddington
Submitted: 2 years ago.
Category: Law
Expert:  tdlawyer replied 2 years ago.

tdlawyer :

Hello, thanks for your question.

tdlawyer :

My name is***** can assist with this.

tdlawyer :

Hello

tdlawyer :

Once you sell the rented premises, it will release equity (on your figures) of £70,000 or so. The official receiver (insolvency office) we use that funds to distribute amongst your existing creditors to whom you owe money.

tdlawyer :

They will not seek to pay off the secured charge on the property that you live in.

tdlawyer :

That would be up to the secured lender to decide what to do. In reality, is unlikely to do anything, so long as the payments continue to be made for the mortgage.

tdlawyer :

Can I ask whether this answers your question, or whether you would like me to expand upon any part of it further for you?

Customer:

Please expand.

tdlawyer :

Happy to expand, what would you like to know more about specifically?

tdlawyer :

Hello again.

tdlawyer :

I can stay here in the chat with you, if you're able to do likewise, and we can thrash out any additional detail that you need.

Customer:

Thank you, ***** ***** rent out the house in negitive equity and move back into my house with positive equity will the Insolvavcy Office force me to sell it to pay credit card debts in my september 2012 bankrupcy any time in the future from now .

tdlawyer :

Potentially, yes, the trustee could force a sale of a property that has positive equity in order to satisfy bankruptcy debts.

tdlawyer :

This could happen any time in the future, if notice is served upon you within the next 12 months by the trustee, indicating his intention to be able to sell property in the future. However, I would have thought, if he intends to sell it, he will probably do so now, to realise the equity in it.

Customer:

Are you saying if the trustee does not serve notice in the next 12 months i am in the clear of repaying bankrupcy debts or is it hung over my house indefinatly

tdlawyer :

Yes, that is correct. I have attached a link of a document which you might find interesting, setting out the law in your particular circumstances: http://webarchive.nationalarchives.gov.uk/+/http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/home.pdf

tdlawyer :

Does this answer your question please?

tdlawyer :

Is there anything further you would like me to address?

Customer:

Just to clarify time period. It adds upto 2years 9moths then i am clear of all bankrupcy debts.

tdlawyer :

You are normally free of all bankruptcy debts after 12 months. This is when bankruptcy is normally discharged. The difference in this instance, is that you have a property property can be sold usually up to 3 years following the date of the bankruptcy order. Once that period passes, unless the trustee has taken steps to force a sale of the property, it is likely that nothing further will happen and that the property will be returned to you.

Customer:

Thank you for the advice.Will use your service again.

tdlawyer :

Thank you very much. Would you mind rating the answer for me before you leave please?

tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience: 11 years experience of general practice.
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