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

Moderators: TalbotWoods, JaneClack

By brassic
#2215 Hi all. My wife and I are at the end of our tether and are hoping that someone out there can give us some useful advice. I went bankrupt in March this year and since then my wife has been trying to buy the BI from the OR. She had a mortgage agreed in principal and the trustee finally agreed a price last month. The mortgage has been a bit more problematical than we had anticipated and we have had to extend the trustees deadline for completion a couple of times. The situation as it stands now is the trustee requires completion by 6th December or he puts the house on the market on the 7th Dec. My wife has raised the money required for the trustee but now we are told that it's not a matter of simply paying them. We are told that our mortgage company have to agree to the sale and they say the only way would be for my wife to take out a new mortgage with them in her sole name except that we tried this in the first instance and they turned her down. :!:
I thought that we signed the 'deed of assignment & release' sent by the trustees solicitors, paid the money and that was that.
Does anyone have any experiance they could share with us.

Thanks.
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By JaneClack
#2216 Is the house in your sole name or jointly owned with your wife? She would have a beneficial interest in the property anyway and generally for the first year the other owners of the property are regarded before the creditors. It is only when the year is up that the creditors interests etc become paramount and the house will go up for sale so I do not quite understand why you have only been given to December 8th. This is only nine months - is there something of which I am not aware here?
By brassic
#2217 the house is jointly owned. The extension of the deadline for completion is conditional to her agreement the house be put on the market if the deadline is not met. To be fair we have not agreed this at present because she was going to pay the trustee with the bridging loan but the complications over the existing joint mortgage & title to the property and their agreement to the salemean we just don't know how to proceed. Any advice????
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By JaneClack
#2219 This is where I come unstuck as it is not something I have seen happen - it all seems to be going so quickly. However I shall be asking someone who should and will get back to you unless someone else gets back to you first.
By brassic
#2220 Thankyou Sarah
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By JaneClack
#2223 My pleasure. Wish I could have said something to put your mind at rest this evening. Am going to bed now - to read Deception Point by Dan Brown. I need a change....
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By JaneClack
#2235 Right have been in touch with a colleague - who has been in touch with another colleague - and this is what we were told:

"If the client's wife was just trying to buy out his beneficial interest and raising a mortgage on that part only, once the funds have been granted, the wife should be able to pay the money, plus assignment costs to the OR and the house would no longer be a bankruptcy asset.

The OR could take the issue to court to seek possession of the house if they think that the money isn't forthcoming quick enough, but if wife has been offered and granted mortgage and the lender(the person lending the money) was happy that the house was, at the time, a bankruptcy asset, there is no need for this.

The court can set a time limit for the money to be paid. If it isn't paid by that time, then they can take possession and would allow 28 days before evicting the client and wife. The house would be sold and wife would get her half the money back.

The OR may be wanting their costs met too and client's wife will need to get a breakdown of how the cost has been arrived at.

I would recommend that she approach the OR and ask him/her why they don't want the money raised by the remortgage ?

Other than that, they would need to consult bankruptcy solicitor and ask for some free advice."
By brassic
#2267 Thanks for the advice Sarah.
After a roller coaster of a ride this week it looks as though it has been resolved. Subject to agreement from the trustees solicitors we should be able to proceed with out further problems.
Here's hoping!!
I'll let you know the out come.
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By JaneClack
#2275 Please do - it looks as if Christmas will be jolly then!
By brassic
#2344 Sucess :!: :!: :!:
The re-mortgage money was recieved by my wifes solicitor today and the trustee has been paid :!: :!: .
This has been a long and painful process and I'd like to thank everyone involved in debtquestions.co.uk for their help.
To anyone considering bankruptcy make sure you do lots of research and don't be afraid to ask questions in the "Ask the Expert" section where you will get accurate, unbiased and honest answers>.

Regards,
P.
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By JaneClack
#2345 HOORAY :lol: I am delighted.