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

Moderators: TalbotWoods, JaneClack

By little woman
#4391 Can anyone help?

My dad died 18 months ago. He went bankrupt in 1994 and discharged 3 years later. I got probate on his flat (in hythe, kent) very quickly, completely renovated it and recently put it on the market. Last night at 9pm (in St Albans where I live) I was served loads of papers informing me that in 2 weeks time there is court hearing in Canterbury to take possession of the flat by a new trustee that has been appointed.

Can they do this? Can they just take possessions?

I faxed the papers to my solicitor but she has not come back to me. I don't know what to do next.
User avatar
By JaneClack
#4404 Technically with pre April 2004 bankruptcies the beneficial interest in a bankrupt's property vested in the Official Receiver or Trustee indefinitely until they decided to sell or the discharged bankrupt bought it back.

When the law changed on April 1st last year the beneficial interest for the family home vested in the Trustee for three years only. If nothing were done about the beneficial interest within three years, the beneficial interest would revert to the ex bankrupt. This meant that old cases with beneficial interest previous to this had to have done something by 31st March 2007 so suddenly the Protracted Realisations Unit reared its ugly head and people are having to buy back beneficial interest from bankruptcies as early as 1987. The ORs costs have gone up as has the equity - remember how many people were in negative equity in the late 80s?

One of the reasons for probate I thought was to ensure that all debts etc were paid and therefore it looks as if the solicitor missed this. Technically, yes, they can take possession so you will need to find out exactly where you stand and I would get in touch with your solicitor very quickly.