Bankruptcy Threat From Creditor For House I No Longer Own

Writing by Diane on Monday 7 April 2008

Debt Question of the Week

One of my creditors has advised that they are going to make me bankrupt and state that it is a matter of public record that I own a house. However I sold the house 5 months ago and now live in a rented property. I have no other assets, so what can I do?

1) You should let the creditor know that you are no longer a home owner, and ask whether they would withdraw the threat of bankruptcy, as you have no assets from which they may receive some benefit.

2) You should then send proof of the sale such as the Copy of Sale documentation from the solicitor.

3) Next, contact the solicitor who handled the sale for you and advise them that the Land Registry don’t appear to have updated their details acknowledging that you are no longer the home owner. Your solicitor should have notified them of this. Perhaps the solicitor has failed to make them aware.

4) If there is no other reason why you wish to avoid bankruptcy, such as job being at risk or the need to avoid it becoming public knowledge, then having a creditor petition for your bankruptcy would at least save you the need to find the fee yourself and it would rid you of all unsecured debts in one go. We would advise that you check your tenancy agreement to ensure this isn’t at risk if you are made bankrupt.

5) If you wish to avoid bankruptcy, then Payplan can offer alternative debt solutions such as completely free debt management or an IVA. Call Payplan free on 0800 917 7823 or submit your details online for free debt advice.

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