Old outstanding Bankruptcy help needed

tracy1978 · 1 June 2009 at 10:25AM

Advice greatly needed please.
In Brief, my family home, still in my parents names has 25yr old bankruptcy charge against it, all of a sudden trustee appears wanting to reposess house. His words "if I leave it any longer a judge would laugh me out of court"
Parents no longer together both agree I can try to sort out issue and take on house, I made trusstee an offer he initially said (only worded) offer should be enough now wants more than double!
The charge remains apparently due to the law of 1914, which was changed in 1986 but the new law never stated it overules 1914 so the bankruptcy still stands.
Do you know any way around this or have some advice?
I have seeked legal advice and although everyone says it cant be right it seems to still be moving towards repossession

unless I buy the house and leave an new charge for the trustees and their solicitors fees to remaining whilst currently incresing by 8% per annum
So in breif that is my mess, appreciate any advice

Many Thanks

lisamummytoarchieplusbump · 3 June 2009 at 12:40PM

bumping this as it seems to have got lost in the pages

fatou256 · 3 June 2009 at 12:45PM

i am no expert but ring the national debtline or CCCS (they have a BR team ). i am no expert but i have found this on the insolvency website

The Act sets a limit of 3 years on the period during which the trustee in bankruptcy can deal with a bankrupt's interest in a home which is the sole or principal home of the bankrupt, the bankrupt's spouse or a former spouse. After this period it will revert back to the bankrupt (i.e. it will no longer form part of the bankruptcy estate) unless the trustee:
(a) realises the interest;
(b) applies for an order of sale or possession in respect of the premises in which the bankrupt has the interest;
(c) applies for a charging order over the premises in respect of the value of the interest; or
(d) enters into an agreement with the bankrupt regarding the interest

you may found this link which might be of interest further down (from part 8 onward )

http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/dearip/dearipmill/chapter18.htm

fatou256 · 3 June 2009 at 12:51PM

not sure of any relevencae but this part form th einsolvency might be of use

11. Bankrupt’s home
This article replaces article number 2 of this chapter.
Following changes made to the Enterprise Act 2002 for a more equitable treatment of the bankrupt’s family home, trustees no longer have an indefinite period in which to deal with that interest. In most cases the bankrupt’s interest in the family home will cease to form part of the bankruptcy estate and re-vest in the bankrupt if the trustee in bankruptcy has not disposed of or transferred that interest, or obtained a charging order against the property within a maximum of three years from the date of the bankruptcy order.
Insolvency practitioners are reminded of the following relevant provisions relating to the time limit imposed on trustees within which a bankrupt’s family home is to be dealt with, following its vesting in the estate.

The trustee must notify the bankrupt and other interested parties where a property vesting in the bankrupt’s estate consists of an interest in a dwelling-house which at the time of the bankruptcy was the sole or principal residence of the bankrupt or his spouse, former spouse, civil partner or former civil partner (modified Rule 6.237 and section 283A(1)).
The notification should be by way of Form 6.83 (as prescribed in Rule 6.237), which should, as a matter of good of practice, be issued as soon as reasonably practicable and no later than 14 days of the expiry of the three-year period.
A failure to issue the notice, however, will not affect the vesting of the property if any of the actions identified in section 283A(3) have been taken. Such actions include where proceedings have been commenced in respect of the property or where the bankrupt’s property has been realised.
Where a property ceases to vest in the trustee in the circumstances set out in the Act, and reverts to the bankrupt, the trustee must make the appropriate application under the Land Registration Act 2002 and notify the bankrupt accordingly (Rule 6.237A).
Where the property consists of unregistered land, the trustee must issue a certificate to this effect to the bankrupt (new Rule 6.237B and new Form 6.84).

Where the net interest of a bankrupt in a relevant property is below £1,000, the court will dismiss any application by a trustee for an order for sale, possession or charging order, and that interest will then revert to the bankrupt. The purpose of this provision is to deter misguided applications whose effect would be simply to incur costs and be of little or no benefit to creditors.

Charging Orders

Where the trustee decides to deal with the property by applying for a charging order his application must be accompanied by a report specifying how his interest is calculated. Notice must be given to any interested party.

The property will vest in the bankrupt once a charging order has been made unless the court decides a different date is more appropriate.
The onus will generally be on the trustee to make any necessary applications to the Land Registry to register the charge and vest the property in the bankrupt (new Rule 6.237A).

beentheredonethatstilhere · 3 June 2009 at 1:32PM

Unfortunatly Fatou that is fairly new legislation, it used to be that the OR could comeafter the house at any time once they had an interest in it.

OP I would get on to the phone to National Debtline ad have achat with them and see what they have to say.

fatou256 · 3 June 2009 at 1:46PM

i thought so they were many articles removed or under review at the time i looked at the insolvency sites so i took what coudl be the most relevant ....

Old outstanding Bankruptcy help needed

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