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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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Does a solicitor acting client in the sale of a property

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Does a solicitor acting for a client in the sale of a property automatically check to see if that client is bankrupt please?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi, Thank you for your question and welcome my name is ***** ***** I will assist you. The solicitor is not likely to always check their own client is bankrupt, the solicitor for the other side should carry out a bankruptcy search on the Land Charges register to check the person they are buying/selling from/to is not bankrupt. Can you provide me with any further information? Kind regards AJ
Customer: replied 1 year ago.
Thanks for such a quick response. Here is the full story.I was made bankrupt in 1991. On legal advice at the time my solicitor, present at the oral examination with the official receiver, advised me not to answer any questions due to a criminal prosecution that was pending.The clock for discharge did to "start ticking" and I am still listed as bankrupt today at insolvency.gov.uk.In 2000 I bought a property. I had to get on with my life.That property is now being sold. I guess there is no note that I am bankrupt on the Land Charges register due to the time difference and because I did not declare I was bankrupt when I bought the property.So I guess if both solicitors rely only on the Land Charges register then I will not be in difficulty?Do you know of any solicitors who would "go the extra mile" and check with insolvency.gov.uk please?If they do find that I am bankrupt then I guess that the proceeds of sale would go to the trustee in bankruptcy which would be a bit of a nuisance. Am I correct?Thanks for your help.
Customer: replied 1 year ago.
"The clock for discharge did to "start ticking" and I am still listed as bankrupt today at insolvency.gov.uk" should read "The clock for discharge did NOT "start ticking" and I am still listed as bankrupt today at insolvency.gov.uk."
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. ***** ask, when you purchased the property where did you get the proceeds for that purchase from?
Customer: replied 1 year ago.
Mortgage and private funds. I guess both the solicitor acting for me and the lender didn't check if I was bankrupt. Their traditional checks seem to only go back 6 years.
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Yes that is correct a bankruptcy search would only show up in the last six years of activity, because in all likelihood your lender would have only done a credit check. Your solicitor is unlikely to bankruptcy search you on the Land Charges register, but your buyer's solicitor might.
Who is your trustee, is it the Official Receiver? Can you tell me why you have not been discharged?
Kind regards
AJ
Customer: replied 1 year ago.
Hi AJ,You write "...unlikely to bankruptcy search you on the Land Charges register, but your buyer's solicitor might." If the buyer's solicitor did such a search they will not find anything as well then? The issue only arises if they use insolvency.gov.uk - do you know of any solicitors who would use insolvency.gov.uk please?If the buyer's solicitor does a credit search I am clear there too.There was a trustee appointed. Not the Official Receiver. The reason I was never discharged was because I never got round to dealing with it. I believe it would only be a formality now.The issue I'm trying to resolve is the risk of losing the proceeds of sale. From your replies so far it seems highly unlikely.
Expert:  Alex J. replied 1 year ago.
Hi
Thank you.
You will only lose the proceeds of sale if it can proved that you purchased the house and it became part of your estate in bankruptcy. It sounds like it did not as you raised the funds after you were made bankrupt and should have been discharged.
Furthermore there has to be a trustee (or the OR) keeping an eye on this, if they do not pursue you for the funds they will be barred from doing so after six years in any event.
Kind regards
AJ
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