Bankruptcy beware!!!!

whaleoilbeefhooked

I want bankrupt in 1992 after giving up on an ill advised IVA. As I had no equity in my property and had no mortgage arrears I was allowed to stay in my property with the OR retaining an interest in the property.

In 2007 the OR handed my account to a solicitor as property prices had risen by then I now had equity. So it was a case of pay up or lose the house.

Lesson 1 Transfer your share of the house to your partner. Think this costs about £250 this is what I should have done.

Now for part that really gets me. I had to remortgage to raise £38,000 to pay my debtors. Guess what the solicitors fee was for his work

£11,000 :mad:

Must be in the wrong job!!!

creditpunch

1992???

apart from that my response is ....... OUCH!!!! ..........That must have hurt.

Deep_In_Debt

Didn't know they did IVA's in 1992?

peachyprice

Times have changed since 1992, the OR only has 3 years to deal with property then it reverts back to you.

blind-as-a-bat_2

Deep_In_Debt wrote: »

Didn't know they did IVA's in 1992?

They where introduced in 1986, but it took a while for the con artists to twig they could make lots of money out of them:rolleyes:

which is why it was a little known piece of legislation, as they like to put it in there glossy adds

fermi

peachyprice wrote: »

Times have changed since 1992, the OR only has 3 years to deal with property then it reverts back to you.

Yep.

Shouldn't happen to anyone now after all that time, since all properties that the trustees didn't sort out the 'interest' in under the old system would have re-vested with the BR by April 2007.

debtinfo

whaleoilbeefhooked wrote: »

I want bankrupt in 1992 after giving up on an ill advised IVA. As I had no equity in my property and had no mortgage arrears I was allowed to stay in my property with the OR retaining an interest in the property.

In 2007 the OR handed my account to a solicitor as property prices had risen by then I now had equity. So it was a case of pay up or lose the house.

Lesson 1 Transfer your share of the house to your partner. Think this costs about £250 this is what I should have done.

Now for part that really gets me. I had to remortgage to raise £38,000 to pay my debtors. Guess what the solicitors fee was for his work

£11,000 :mad:

Must be in the wrong job!!!

Yep, unfortunatly when they changed the law to introduce the 3 year rule in 2004 they gave the OR's 3 years to clear up all the outstanding properties on the books before they lost their claim so there was a mad rush to get them all done. The change was done to bring better rights for people who owned homes so they knew what would happen to them in a reasonable period of time. Of course this brought alot of pain and hassle to the ones that were made before 2004 that had been hanging round for years

Edit : Obviously not as quick as fermi

fermi

debtinfo wrote: »

Edit : Obviously not as quick as fermi

But you probably explained it better.