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Standuptotheman

Hi,

I was made bankrupt in October and had my interview with the OR two weeks ago. It was all relatively straight-forward with the exception of a property that I own jointly with my partner (who does not have any financial problems) that the OR is naturally showing an interest in. The property is in significant negative equity and is currently rented out to tenants. My partner and I also currently live in a rented property ourselves.

The let property is jointly mortgaged with Northern Rock with a monthly mortgage payment of £1,100pm interest only. The monthly rent we receive is £1,030pm after letting agent fees. My partner makes up the shortfall of £70pm herself. The OR has written to her and me stating that the trustee wants us to deliver up half of the received rental income after costs under Section 291(1) of The Insolvency Act 1986. However, the OR has said that the mortgage payment will not be an allowable cost as it is a provable debt.

This seems very unfair to my partner who is effectively being asked to pay the whole mortgage payment with only half the rental received. Effectively she is being asked to contribute towards my creditors. This is not something she has the money to be able to do and in this situation we would have no option but to give notice to the tenants and move back into the property. However, all this would do is make the existing tenants (a young family) without a home and nobody would be any better off financially (including my creditors).

Has anyone experienced this situation before or have any idea who we should speak to for advice? Appreciate any feedback

gibo

Hello
I was made bankrupt in Dec 2004.
I have just been checking my credit with Experian and Equifax.
Both do not show that I have been Bankrupt.
Equifax shows 3 accounts as Defaulted and the default dates as 15/04/2005, 14/02/2005 and 07/02/2005.
These are not showing on the Experian report.
I believe that by the start of next year these should be off my report?
As the dates are not my Bankruptcy date should I write to the company's who the debt is with to get them to correct it on my report.
Hope you can help me with this matter
Best regards

fermi

gibo wrote: »

I believe that by the start of next year these should be off my report?
As the dates are not my Bankruptcy date should I write to the company's who the debt is with to get them to correct it on my report.

You could. But there probably isn't much point.

As they are, they will come off your report early next year anyway, without you having to do anything.

StepChange_Pavan

Standuptotheman wrote: »

Hi,

I was made bankrupt in October and had my interview with the OR two weeks ago. It was all relatively straight-forward with the exception of a property that I own jointly with my partner (who does not have any financial problems) that the OR is naturally showing an interest in. The property is in significant negative equity and is currently rented out to tenants. My partner and I also currently live in a rented property ourselves.

The let property is jointly mortgaged with Northern Rock with a monthly mortgage payment of £1,100pm interest only. The monthly rent we receive is £1,030pm after letting agent fees. My partner makes up the shortfall of £70pm herself. The OR has written to her and me stating that the trustee wants us to deliver up half of the received rental income after costs under Section 291(1) of The Insolvency Act 1986. However, the OR has said that the mortgage payment will not be an allowable cost as it is a provable debt.

This seems very unfair to my partner who is effectively being asked to pay the whole mortgage payment with only half the rental received. Effectively she is being asked to contribute towards my creditors. This is not something she has the money to be able to do and in this situation we would have no option but to give notice to the tenants and move back into the property. However, all this would do is make the existing tenants (a young family) without a home and nobody would be any better off financially (including my creditors).

Has anyone experienced this situation before or have any idea who we should speak to for advice? Appreciate any feedback

Hi Standuptotheman and thanks for your post.

I’ve answered your question in response to the private message that you sent us. If you need anything clarifying, please let us know.

Kind regards,
Pavan

1worried1

Hi,
Could you please tell the approx guidelines about how much the OR will take of overtime or bonus, delcared BR on 29th oct with no suprlus so no payments, Thanks!

elliesmemory1

Is there any information regarding the new rules for Ipas and surplus amounts please. Also can you let me know if it only applys to anyone going br after 1st Dec or does it apply to all brs. Thanks

lynneworrier

Thank you Pavan. I have sent a letter of complaint re the IP but I have also had a reply to my request from the IP himself. He said that he is going to hold on to the family home for the full 3 years to try and realise some equity, even though we are £40k in negative equity. The house my daughter lives in is going to be retained "for years to come" and while my daughter is paying the mortgage she is "retaing the equity" in the property. Can they do this as the guidelines say that the home and any property lived in by a close family member or where they pay the mortgage, should be dealt with quickly. I don't know what to do now. Thank you for reading this

debtinfo

I presume the guidelines that you are thinking off are the OR's ones, they dont apply to IP's. What matters is the law, in whivh what the IP has said is correct

Jill_Kennedy

I am now a discharged bankrupt but i have a BRU that lasted for a further five years. Due to the death of my father in law i have some money due to me. Is there any reason why i cannot open a savings account in my name with this ? I have a basic bank account and alo an instant access saver but they pay very low interest rates.

debtinfo

As long as he did not die before you were discharged, then it is your money to keep and can do what you want with it