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leanne-jones, Barrister
Category: Bankruptcy Law
Satisfied Customers: 183
Experience:  Barrister
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Hello I am bankrupt. I had my meeting with my OR last week. I

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I am bankrupt. I had my meeting with my OR last week.
I have 8 buy to let properties and my home
The 8 properties, after mortgage payments, bring enough money to allow me to pay my mortgage and depending on certain months leave enough for food.
The OR has passed the matter to a Trustee but explained that what would probably happen is the Trustee will collect all the rents, not pay the mortgage's and wait for the mortgage companies to reprocess. Is this true as I thought the Trustee had a duty not only to carry on paying the mortgage but also not to incur another creditor. I also won't be able to keep up my mortgage.
Thank you
Hello - my name is XXXXX XXXXX it will be my pleasure to assist you today.

The Trustee has a duty to maximise return for the creditors. So this could be by selling the properties, collecting rents or by allowing repossession. However the Trustee owns the property now. This means they must maximise any return.

It seems to be that they should use the rents to pay the mortgage and try and sell the property. But they can not just increase the debt, this makes no sense. But in theory they could collect rent and not pay, but that would increase the debt which makes no sense.

I hope this answers your question and if I can be of any further assistance please do not hesitate to contact me.

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