Questions you have before making a decision to go Bankrupt and the Bankruptcy process

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By Belly-Up
#1671 Thanks Nicky. I have already seen that link but thanks. I'm sure that it will be of use to others.

Although I have a fair idea, I'm not certain what you meant by "It will also depend on how you held the property out to creditors in the past".

The occupational rent issue will be part of the beneficial interest fight that she will be fighting. There is the pre-bankruptcy position and the post bankruptcy positin to be agreed as part of the beneficial interest position. Obviously it is the post bankruptcy position where the occupational rent comes in.

The position is really a catch-22.
Don't fight the beneficial interest and the trustee gets all or most of the equity (so she looses indirectly as we have no plans to divorce)
or
Fight for her beneficial interest and loose a bit more in solicitor fees and court costs
or Fight and win.

She has a very solid proveable position so getting a 50% ruling is almost certain. I believe that there is a chance that she could get 75% based on contributions. So a fight it will be.

At the end of the day it makes the difference between Annulment (and us having less money to start a new life) versus Discharge (and enough money to start a new life). Frankly having lived for the last 10 years as a bankrupt annulment really does not seem to matter. It is having the money to start a new life that does.
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By Nicky
#1672 The only thing I could think of regarding how you held the property out to creditors was to do with secured loans e.t.c. however, I'm not 100% sure. I really know nothing on this subject, but the person I asked is an IP, so she knew straight away what I was talking about.

Fighting for the beneficial interest does seem the right way to go, but, with the name being only in your name, that might be where the battle ground is.

Good luck anyway.
By Belly-Up
#1710 I have been told that the a trial of the beneficial interest issue will take 2 days and will probably cost my wife £8,000.

Can anyone of you out there who are in the know confirm that £8,000 is a realistic figure for a 2 day trial or is it way too high or low?.
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By Nicky
#1711 If the costs are to cover court costs, trustees solicitors and your partners solicitors, then that sounds about right.

Aparantly however, if your partner wins the case, the judge could award her costs and the trustee could have to pay up the money she paid.

I'm assuming you have taken advice from Insolvency Solicitor who has given you lots of confidence that you have a more than good chance of winning the case?

I'm not saying you havnt looked at things from every angle possible, but it is very unlikely the trustee take it to court unless he/she was absolutely SURE the case was strongly in their favour rather than your partners.