A relative has apparently been declared bankrupt due to non-payment of "Factoring Fees" to a local authority (she owns a flat in a block which has a mix of council tenants and owners). Current debt in respect of this is around 10K. She is working and has equity in the property. Here's what she told me:
"The trustee person is Xxxxx Xxxx who works for X Xxxxxxx SIP
She has taken details of my earnings, assets etc. The car will likely remain with me because of it's low value.
I had to also detail all of my unsecured debts, including the factors fees they took action for, a total of about 15k. There was a total of about £2500 in the accounts they put a freeze on so that money goes to them.
The options she gave me were as follows
They take the flat from me and sell it to release the equity. Any difference is returned to me.
Someone I know can purchase the flat to release the equity and if they choose they can sell it back to me at such time as I can obtain a mortgage.
A 3rd party pays what is owed, because the fees for her services are constantly added she could give me a rough guide of around 13k if it was dealt with within a month, this would increase as time went on.
She was like a magpie....I was going through my car paperwork for the registration document for the (current car), she saw what was left of the document for the old (car scrapped a couple of years back) and pretty much accused me of still having it and not saying so. I had to explain to her that the section the scrappy sends away had been removed because she thought I was supposed to give them all of the document (what, so someone can commit ID fraud?) but she didn't seem convinced that I don't have it any more. I have a letter somewhere from DVLA about the (scrapped car) being scrapped so if it comes up again I'll look it out for her. Why would I have taken that document with me if I was trying to hide another car! An old banger of a car!"
I'm assuming SIP is an insolvency practitioner.
Can anything be done at this stage to rescue the situation? She's planning to scan relevant paperwork ASAP. Let me know if more detail is needed.