Bankruptcy Settlement

Spammer50

We have now got to the stage, after my husbands bankruptcy, where I have been advised to make an offer on my husbands share of our assets. The majority of the debt (approx. 90%) is to HMRC and although my husband did pay a proportion, most of the debt is for fines and interest. What are they likely to accept as a reasonable offer from me?
Whatever it is, will result in me borrowing/raising somehow.
Any advice would be gratefully received.

bat-out-of-hell

What are the assets? and what are they worth?

Sorry your post raises more questions im afraid.

Are we talking property? if so how much equity is in it/them and do you already hold a beneficial intrest in them?

Spammer50

The assets are worth far more than the debt. I have a more than half beneficial interest in the property as I paid deposit and have contributed to loans etc.
Asset worth approx. £1.5M, debt £.5M. Hopes this helps formalise a reply to me.
Thanks

bat-out-of-hell

When you say 'Asset Worth' is that the market value, or the amount of equity after any secured debt is take into account?

Just need to be clear on this as secured debt is not included in Bankruptcy, so the asset worth is what is left IF you sold AFTER all debt secured on the property (mortgage, secured loans, or any other debt where the crediter is holding a charge over the property) had been paid.

If we assume 50/50 BI then half of what is left is what you need to find to buy your partners share back.

debtinfo

If his assets are worth more than his debts then they are not going to accept less. They will expect the full amount of his debts plus statutory interest plus the IP's fees plus the 15% secretary of state fee.

To help anymore than that we are going to need ALOT more information, it is just impossable to help with only a fraction of the situation revealed

Spammer50

The market price of our assets (house/land) is approx. £1.5M. We have mortgage of £160K. No loans. No charges on property.
My interest is more than 50%. My husbands share has been calculated as £385,000.
Bankruptcy debt is £500K. Which is made up mostly of interest and fines from HMRC.
I understand from IP that they cannot claim for more than the debt!
Is this enough information yet? I don't know what else I can tell you.
Hope you can assist me in formalising an offer for my husbands share of our assets.

debtinfo

so if his share is worth £385,000, then they are going to want £385,000, you might be able to get away with £370,000 to save them the trouble of forcing a sale through court

Has the IP agreed the lower share of the equity, or is that your estimation

Spammer50

The IP has come up with this figure.
Can they force a sale on us, if I have made a reasonable offer?

debtinfo

If your offer is less than what his share is worth then they can force a sale, If you offer what it is worth then they would be mad to go to the expense of taking it to court, You can usually get away with a marginally lower offer as it would not be worth the court costs, but there will be a point where they will say no. Remember they are there to get the best result for creditors