Bankruptcy Help Required

kiwijaffa

Hello Everyone,

Thanks for reading my thread. Its a long story but Ill try to make sense!

I have been bankrupt for the past year and according to the Insolvancy register I am now discharged.

The main problem is during my year as a bankrupt the OR appears to have done little if not nothing in processing my case. At the start of the BR I obviously filled in the relevant forms stating all my information and the debts/assets I had. I was a buy-to-let landlord and due to being made redundant I was unable to keep up the mortgage payments, then when I found a new job it was paying £30,000 less than my previous job so it was impossible to cope. I was extremely stressed and worried as I had always been a good landlord and felt now unable to deal with the properties.

So in my BR statement I stated that I wanted to properties to be re-possessed. The OR told me not to talk with the banks anymore and to tell my letting management companies to tell the tenants to give notice. So for a year now my properties have been sitting empty. About 6 months ago the OR called me to ask if I had heard from the banks. I had only received more demands for payment etc but nothing about re-possessing. The OR told me that they were having trouble getting in touch with the banks.

Now I get a letter saying my case has been taken over by the RTLU. I understand this is a normal procedure but my main worry is this:

I received a 'Tenanted property Questionaire' for each of my former properties. I gave them this information a year ago!!! I have no idea what has been happening to them as I do not live in the same town as my properties- they are miles and miles away. They said in the letter I am not allowed to rent out the properties again - well I knew that because I year ago I was told to make them vacant! What have the OR been doing for a year? Should I be worried that my properties are not re-possessed and how does this affect my discharge? I never received any information regarding extending my BR. The other worrying thing is that I have never made any payments to the OR and they have never sent me anything regarding paying any money back.

I am so confused and I dont think I really understand what has been happening for the past year.

Thanks for your help and I would appreciate any useful comments

EL

debtinfo

hi

dont worry about it, properties can take a long time to sort out especially buy to let ones, if they are in negative equity then the OR will not will not repossess them, it is the mortgage company that will need to do this, over the last year there has been uncertainty as to how to proceed in these cases and the OR's have been awaiting legal advice on how to proceed. I Would suggest that if there is no equity then get in touch with the mortgage lenders to see if they will repossess

kiwijaffa

Thank you so much - this makes sense.

Am I allowed to contact the banks and should I tell the RTLU? I would like them to start re-possession proceedings. Since I am registered as discharged does this mean that the debts I accrued before BR are now back in my possession? According to the OR's letter the legal estate of the properties is the OR's?

Thanks again

EL

debtinfo

The debts will remain in the bankruptcy no mater how long it tkaes to deal with the properties EXCEPT if you sign anything to make yourself liable again. So watch out for the sneaky mortgage lenders who may try to get you to sign a deed of acknowledgement. There is no harm in asking the bank what they intend to do and you dont need to tell the RTLU at the moment, if you find out that they are definitly going to repossess then tell the RTLU

kiwijaffa

Thanks, is there any reason (other than trying to get my liability back) that they would not want to re-possess? I am concerned that this will drag on and on. I want rid of them. What will happen once they have been eventually been sold? Will the RTLU chase me for the Negative Equity even though I am discharged? Why have I never made any payments. I am so confused!

debtinfo

dont worry as long as you dont sign anything you will never be liable for any shortfall. These things just take time to sort out

kiwijaffa

Thanks again - just had an awful letter and need some advice

I have not managed the properties for the last year and like I said before have no idea what their state is - if they are empty, squatters. OR said im not allowed to let them or live in them so I cannot really do anything.

BUT had a Council Tax impending court action notice for one of them sent to me. How can I be liable for C.Tax if im not allowed to live in the property or let it out (then tenants would be responsible) they say in the letter that they are trying to get me imprisoned for 90 days. Please help im really worried. If I am dischared am I liable? I dont think I am but dont know where to turn to!

InnerPeace

Hi, RTLU is part of the insolvency service and dealing with the properties as assets in the bankruptcy estate - if there was an immediate realisation to be made an Insolvency Practitioner would have been appointed as Trustee, and they won't ask for any money regarding negative equity.

The properties are the responsibility of the OR so there's really no need for you to worry about what is happening with them. With respect to the council tax, give RTLU or your OR office a call and send them a copy of what you have received, and contact the Council and tell them about the bankruptcy, unless you purchased the beneficial interest the properties will still vest in the bankruptcy estate.