Discussions on life after your bankruptcy discharge.

Moderators: TalbotWoods, JaneClack

BysteveK2
#293653 On 28th April, it will have been 3 years since the bankruptcy, and as there is no equity in my house the IP has not sold it. As I understand it, they will no longer have a legal claim to the interest in the property and have written to me to ask my intentions - they have requested an offer of £2500 to cover their costs, and land register changes etc.

This seems very excessive as I thought it would just default back to me anyway - It feels like they're just trying their luck. Do I have to pay them anything at all? Is there a way to do the conveyancing/land registry stuff myself?

Thanks
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ByJaneClack
#293683 The response will be different depending on whether the property is solely or jointly owned.

Jointly owned properties are easier in that only the bankrupts beneficial interest vests in the Trustee in Bankruptcy. The Trustee protects his interest by registering a restriction at Land Registry, which can easily be removed by the Trustee if after three years there is no equity to realise and the property revests in the bankrupt.

Solely owned properties are different in that it is the legal interest that vest in the Trustee. A Bankruptcy Restriction is automatically registered against the title of the property. If, as in the scenario you outlined there is no equity after three years the Trustee must, within seven days of the third anniversary of the bankruptcy order, make whatever Land Registry application is necessary to reflect the re-vesting on the title register. Ultimately, a few more forms are required to be completed and submitted to H M Land Registry.

I don’t see how the Trustee can ask the bankrupt to cover the costs for something the Trustee must do under the Insolvency Rules.
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ByTalbotWoods
#293723 I agree with Sarah, as it sounds very much like the OR has 'off loaded' the property matter to an independent IP, and they are trying their arm.

I would strongly suggest contacting the Insolvency Service directly and asking them what happens about the property at the end of the period. They will give the only reply they can, and that is it revests to you, without cost, and then throw that at the IP

I would suggest doing this in writing (OK email) via this:

http://www.insolvencydirect.bis.gov.uk/ ... eneral.htm

Oh dont mention that the IP it trying to charge you!
BysteveK2
#293763 Great, thanks. I called the IP and asked what they were playing at and their response was that they have to be seen to be doing the right thing by the creditors (yeah, right like any of that money would've gone to my creditors!) but in reality they would accept whatever I can afford. I suggested £200 which they accepted.

Now that you've mentioned it is their duty to re-vest the interest to me anyway, then no wonder they were willing to accept £200. I'll write to the insolvency service as recommended - if I can get a decent response from them then I'll revoke my offer. It is less than a month till the 3 years is up anyway, so if I don't pay the £200 then I guess it will force the issue?

Thanks
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ByTalbotWoods
#293803 Actually that phrase "they have to be seen to be doing the right thing by the creditors" has just annoyed me something chronic. The money would not go to the creditors at all it would go to the IP only to cover their fees.

Just on that alone I would be raising a formal complaint, as they have just misled you!
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