Selling our house before Brankrupty

tomterm8

fiveyearplan wrote: »

But that doesn't tell anyone how much money they have left, how many other creditors they have etc. Not a very good indication.

Most creditors tend to require quite a lot of information before agreeing to a F&FS... i.e. they generally ask for a list of creditors and how much is owed. ( Credit reference isn't exhaustive).

I don't think that would extend to finding how much money is in your bank account, but if the offer was substantially below any realised capital, I doubt they would agree.

Either way, once you decide to act selling the house quickly would be quite important, since if the creditors get wind of it before the sale they are likely to go to court and try to get a CCJ & eventually a charging order or third party debt order.

fiveyearplan

I agree with you tomterm about acting quickly but if the person hasn't made any payments for some time (say 12 months) the lender is probably going to offer a reduced settlement themselves. Obviously they would start their negotiations higher than 30% but they would make some kind of offer.

I certainly wouldn't advise anyone telling the creditor that they have sold their house and have a large amount of cash available!