Help! Insolvency Service are out to get me

NelskiB

Today I received a letter from an 'Insolvency Service' requesting a Cheque for £29,000.00!!!!!
2 years ago I jointly bought a property whereby the vendor 'gave' us £29,000.00 gift of deeds. now She has filed for bankruptcy and now we are being chased for this under Section 339 of The Insolvency Act 1986.

Can this really be for real? how can I accept that 2 years ago I was given a 'pretend sum of money' and now have to pay it back.

I have been given until 31st July 2009 to find £29,000.00 or go to County Court. I don't even have £29 right now.

Can someone please offer advise on this... :mad:

the property was initially valued at £249,000.00 and we got mortgaged to £220,000.00.
As the mortgage was nearing completion my lender (Natwest) had the property revalued. the new valuation came out at £223,000.00, this then put us into a 'high lending bracket' and got charged around £5,000 because we were borrowing within 90% of the property value. can this affect the claims of this Insolvency Service?

Any assistance will be greatly appreciated.

Thanks
N

Trollfever

A transaction at undervalue.

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part4/part1/part1.htm

Take advice from a qualified insolvency practioner.

theGrinch

as the previous contributor said, speak to a licensed insolvency firm. usually they will do the first meeting free. you have an interesting case here especially with the revaluation. also as this was not a related transaction (you are not a relative to the vendor I assume) and the vendor had no beneficial interest then it makes it more interesting.

often the 'Insolvency Service' will try it on in the hope of recovering monies but at the end of the day they will be commercial about the amounts and timings.

Richard_Webster

What were the solicitors doing that acted for OP?

If the real value was £249K and OP got proeprty for £220K because of a "Gift" of the difference, then they should have advised OP of the risks of the seller's possible future bankruptcy.

However if it can be proved that the proeprty was only worth £223K then the "gift" element would only be £3K and that is all the insolvency people could claim back.