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LegalNinja
LegalNinja, Solicitor
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Experience:  Solicitor
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I have a question about an investment i made into a property

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hi, i have a question about an investment i made into a property where the seller has now gone bankrupt
JA: Where are you? It matters because laws vary by location.
Customer: United Kingdom
JA: What steps have you taken so far?
Customer: not a lot, the seller is refusing to answer and the estate agents aren't being overly helpful
JA: Anything else you want the Lawyer to know before I connect you?
Customer: i have an agreement signed with the seller to purchase the property for a certain value. This agreement was in place when the seller was bankrupt, the bank have reposessed the property and i just want to know if i have a legal right to my investment back or to proceed with the purchase of the property

Hello,

Welcome to Just Answer. I will be assisting you today with your query. Kindly note, this is not a chat service and my responses may be delayed due to assisting other users.

You may request a phone call through the site for an additional small fee. This is an automatic offer made by the system giving you the opportunity to pay extra to discuss things over the phone. However, it is entirely optional and if you just ignore it and close it down you will not be charged extra and we will just continue in writing at no extra cost.

Have you contacted the Official Receiver or insolvency practitioner?

Customer: replied 7 days ago.
Not yet, this is my first request for advice after the solicitor who oversaw the agreement and the estate agents, both were rather unhelpful sadly
Customer: replied 7 days ago.
i've also seen a great reluctance from the seller to speak to me

Thank you. Did the property transaction reach exchange of contracts?

Customer: replied 7 days ago.
no, the agreement i have was agreed seperately. My commitment to the contract was to invest and finish the property, the seller agreed to sell the property to me for a sum. It turns out, a year later, when attempting to buy through an estate agent that the seller is bankrupt and the bank have now taken ownership.
Customer: replied 7 days ago.
I'm hoping however the agreement is still classed as a legal agreement, it was put together by a solicitor and both parties signed against the terms agreed.

You have the right to recover your investment by registering yourself as a creditor. You will be added to the list of creditors and will be asked to complete a "Proof of Debt" form. If you are unsure who is handling the case, you can check this by looking up the Individual Insolvency Register below:

https://www.gov.uk/search-bankruptcy-insolvency-register

Please further see guidance on what happens after you've registered as a creditor and the procedure:

https://www.gov.uk/government/publications/claim-money-back-from-a-bankrupt-person-or-company-in-compulsory-liquidation-guidance-for-creditors

Your agreement is binding and you will simply be added to the list of creditors.

Does that clarify your next steps?

Customer: replied 7 days ago.
thank you, i'd read this prior to speaking to you and its helped make me feel better about the situation. I will look into this now. If i need to speak to you again, will this conversation be saved?

It's a pleasure. Yes, you may come back to me anytime for any guidance.

In the meantime, I would be grateful for a 5 star rating at the top of your screen for helping you this evening. It is important to leave a rating as this is how Experts are credited. Don't worry, the chat will remain open.

Thank you :)

LegalNinja and 3 other Law Specialists are ready to help you
Customer: replied 7 days ago.
thank you, ***** ***** of course give you a good rating thanks again! :)
Customer: replied 7 days ago.
i can't find the person on the register for bankruptcy. What can i do if the seller isn't bankrupt but has simply ceased the payments he had on the property and the bank has repossesed in this way and not because of bankruptcy, does the case about still stand?

If the seller is not being made bankrupt, you will have a potential claim against him/her in the Small Claims Court for breach of Contract.