The OR will deal with property as soon as possible, for example if you want to buy the BI, then this can be done within a few months of your bankruptcy.
No property will be sold back or dealt with until 2 years 3 months has elapsed since the date of the bankruptcy. The BI will then be calculated on the market vale then. This applies even if the property is in significant negative equity.
There are multiple charges on the property
If there are significant secured charges on the property the OR will have the discretion of dealing with the BI prior to the new 2 years 3 months.
Is a change in law needed?
No, currently the law permits a window of three years in which to deal with property.
Who will this effect?
It appears that any negative equity property that has not already had the beneficial interest costs (£1 plus OR's fees) paid by 1st Jan, will be subject to the new rules.
The date of bankruptcy seems irrelevant.
Want to talk to someone confidentially, without obligation and free of charge?
Abbreviations used in DQF
My advice is guidance only, if you want the law then consult a lawyer!
(c) All Spelling mistakes are my own design, infringement of them may result me sulking!