UK Bankruptcy & Property share in France.
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SmallTalk
Posts: 9 Forumite
If someone has a UK bankruptcy and a 10% (£4.5k) share in a property in France can the OR place a charging order on it? I have read that Charging Orders on property require a different ex-parte application to be filed. Such application is called "Requete aux fins d'inscription d'une hypothèque judiciaire provisoire" (Application for Registration of Provisional Mortgage). The subsequent Order is notified to the debtor, who can challenge the Charging Order before the Court. However, if the property is held in joint names under a "Communaute Universelle legal" regime (joint tenancy), creditors cannot seize it. (Metz Court of Appeal 3 November 1998.
Is this correct?
Is this correct?
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Comments
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Because I was advised to be upfront about everything. If you fail to notify the OR of your true assets and they find out it is deemed to be non-cooperation and can extend the term of your bankruptcy restrictions.0
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LadyGMadameToThee wrote: »Yes, I understand the rules - but people often play fast and loose with them because it's the only way to get ahead in life. My relative was declared bankrupt nearly 5 years ago and regularly jets beween Britain and Italy - he also has Italian bank accounts etc. He was never rumbled, and they have no way of knowing unless you confess everything. I'm assuming that you've already declared the interest in the French property?
We always advice posters to be honest with the O.R, there will always be dishonest people who will break the rules, but please keep these stories to yourself ......it does not help the people on this board who give up their time and experiences to help others.0 -
LadyGMadameToThee wrote: »My relative was declared bankrupt nearly 5 years ago and regularly jets beween Britain and Italy - he also has Italian bank accounts etc. He was never rumbled, and they have no way of knowing unless you confess everything.
As of this year, your relative's Italian bank(s) will report the existence of of the accounts as well as the balances and interest paid to the UK tax authorities.
https://en.wikipedia.org/wiki/Common_Reporting_Standard
It's only a question of time for him to be found out.0 -
bengal-stripe wrote: »As of this year, your relative's Italian bank(s) will report the existence of of the accounts as well as the balances and interest paid to the UK tax authorities.
https://en.wikipedia.org/wiki/Common_Reporting_Standard
It's only a question of time for him/her to be found out.
Nope, unless of course you live in a parallel universe where a) tax and insolvency investigators are fully resourced b) there is joined up information sharing between government bodies.
Yes, HMRC might get details of interest paid to LadyGMadameToThee's relative in Italy along with that paid to ten's of thousands of other Brits (assuming there is no de-minimis amount). Then someone has to go through all those records, cross check them against UK tax records and separate bankruptcy records (going back how far?). Then what are they going to do, forward that info on to the Insolvency Service who are struggling to deal with new cases coming over their desks let alone going back over cases with potentially complex overseas assets from years ago.0 -
So if we could get back to my question...
As a 10% shareholder (possibly bearing in mind that I've paid nothing towards renovation, bills etc since 2003 & haven't actually been to the house since 2004) is it possible for the OR to place a charge on the property? Should I suggest to one of the other owners to make an offer to the OR to release their interest. My % is currently valued at £4.5k, so how much would be a sensible offer if this is the way to go?0 -
I think asking any of the other stakeholders want to make an offer is probably a good idea - as is being honest with the OR and you deserve credit for doing the right thing
Obviously, shared ownership property abroad is a bit more complicated then the norm and I think the OR is the best person to make a decision in this case not least becasue it is technically no longer yours to worry about - the asset belongs to the OR.0 -
Hi SmallTalk
As your query relates to a property abroad it is going to make things a little more complicated. What I can say is when you are made bankrupt you will have to declare all assets, including those abroad. As the asset is within the EU it should make it easier for the OR to deal with it.
I’m unsure of the exact procedure they would follow to obtain a charging order in France but you may find that a third party can make offer to buy out your interest in the property. If the OR thinks the offer is a good deal for your creditors they may be willing to accept. It will be down for the OR to decide what a fair amount is. Getting some independent valuations of the property may help.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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