buy back interest in home

katygeorge

hello

i went bankrupt last sept and have now been discharged, i dont currently have any spare money to do so but have been looking in to how i buy the interest back in my house from OR as i really dont like having the fact they may take it hanging over me.

if anybody has any advise on how i do this i would be most greatfull

katy

silvercar

Wait and forget about it for a while.

New guidelines mean that the OR will hold onto the BI until 2 years and 3 months after you went bankrupt. Not much point speculating on what the value will be at that point in time.

katygeorge

what will happen if my house is still in negative equity will they just give it me back?

milothewestie

silvercar wrote: »

Wait and forget about it for a while.

New guidelines mean that the OR will hold onto the BI until 2 years and 3 months after you went bankrupt. Not much point speculating on what the value will be at that point in time.

if poster went bankrupt last september wouldnt the o/r use the old rules and be able to deal with it more quickly,one of my friends went bankrupt last april and has just dealt with his house and they used the old rules,if its negative equity it would be offered to you for one pound so maybe you could take it back:D

BB&B

Under the new rules, if the property remains in negative equity, then the IS will 'give' the property back (called reinvestment of the asset to the bankrupt).

If there is equity, then the IS will allow you to buy the BI, and then solicitors costs will be involved.

The reason for this change is about the cost to the IS, buying back actually costs the IS a fair whack in administration, etc, so if there is no value then the OR will now dispose of it as cheap as possible, i.e. without a solicitor.

The new rules came into effect from 1st December and they are NOT retrospective, so old and new bankrupts have to comply with them from that date

@milothewestie For this to have happened the bankrupt would have had to either have paid their £1 or the process was passed a certain point, where all that was left was to dot the i's and cross the t's. If it wasn't then OR would leave him/herself open to a compliant from the creditors and possible disciplinary proceedings for negligence!

Tim

milothewestie

@milothewestie For this to have happened the bankrupt would have had to either have paid their £1 or the process was passed a certain point, where all that was left was to dot the i's and cross the t's. If it wasn't then OR would leave him/herself open to a compliant from the creditors and possible disciplinary proceedings for negligence!

Tim[/QUOTE]


no he just complained to the insolvency service, that this was advice that was given to him by a insolvency practitioner on the rules of the insolvency service when he went br,not his fault they decided to change rules,he eventually got them to back down and use the old rules after much complaining and threatening solicitors etc etc,his argument was if they had told him he would lose his house then he would of gone down the iva route, although they had already told him he could buy the house back in a face to face interview he had with them they then said they were gonna use new rules hence his threat of legal action

morledge142

hi katy,

sorry to jump on your post again, but

why didn;t they repossess ytour house when you went bankrupt.

r u saying if you keep payibng your mortgage and you go bankrupt they don;t reposess.

what do you mean by buy back your interest and who are or.
thanks again

tigerfeet2006

morledge142 wrote: »

hi katy,

sorry to jump on your post again, but

why didn;t they repossess ytour house when you went bankrupt. You don't automatically loose your house when you become BR. If you can afford the mortgage payments. There is a chance to buy any equity in the house at a later date.

r u saying if you keep payibng your mortgage and you go bankrupt they don;t reposess. Yes

what do you mean by buy back your interest and who are or.
thanks again

When you go BR the OR (official reciever-the person who deals with you) will be entitled to any equity you have in the house. At 2 yrs and 3 months point after BR he will come to you and ask for this money. If you are in negative equity the house reverts back to you. If you are in equity you will have to find the money to pay it to the OR or sell the house to give it to him or they may put a charge on the house for the amount should you sell at a later date.

Please ring one of the debt charities and get some adcice on your situation. Numbers and links in my sig.

milothewestie

morledge142 wrote: »

hi katy,

sorry to jump on your post again, but

why didn;t they repossess ytour house when you went bankrupt.

r u saying if you keep payibng your mortgage and you go bankrupt they don;t reposess.

what do you mean by buy back your interest and who are or.
thanks again

or is the official receiver,they dont reposses your house when u go bankrupt,if its in negative equity you will be offered the interest(equity) in your property back,if there is equity in your property lets say 20000 pounds the o/r will want to realise this towards your bankruptcy estate for your creditors,if you can raise this money you can still buy the equity back in your house or a relative may also be able to do this for you,(equity is also called benificial interest in bankruptcy),but you must also keep up to date with your mortgage payments

katygeorge

hi morlegde

they dont just kick you out and due to my mortgage and secured loan and current property value they knew there would be no money in it, so yes i do still pay my mortgage and secured loan (cant include secured in bankruptcy)

but any equity in the house (money left over in a sale after paying and secured creditors) is passed over to the or they put a charge on with the land registry that the house may not be sold of transferred, so you cant pull a fast one. so basically they now own the tini bit of my home that i owned

but you can buy this back if your house is in negative equity it cost £1 plus their legal fees and your own so all in all about £1k or you can leave it to play out from what im reading at the end of about 2 1/2 years if still in negative equity they just give it back and remove the charge or if it looks like it may have gained equity by a boom in property market they sell it pay of the creditors and take what is left to pay the creditors you went bankrupt over, so your left with nothing. this is the bit im scared of and why im looking in to buying it back although im being told the housing market is nowhere close to having a boom, i dont feel reassured as my house was worth quite a bit and if it goes back to that value i will most likely lose it, just got 12 more months to go so gonna have to hope it stays flat til l then to get my home to be fully mine again

hope that all makes sense, if you want to know a bit more pm for my number ill happily talk to you

BB&B

In which case, in the region that covers where I work, if this became known to have happen an examiner WOULD be disciplined.

Only the IS HQ Directorate can issue exemptions and they inform all offices of these exemptions (as they could be used as precedences), and to date there have been NO exemptions notified. And yes I have checked!

As I have said before, they may have allowed this through as it was at the stage of crossing t's and dotting i's, so it would COST the IS not to proceed!

Tim

milothewestie wrote: »

no he just complained to the insolvency service, that this was advice that was given to him by a insolvency practitioner on the rules of the insolvency service when he went br,not his fault they decided to change rules,he eventually got them to back down and use the old rules after much complaining and threatening solicitors etc etc,his argument was if they had told him he would lose his house then he would of gone down the iva route, although they had already told him he could buy the house back in a face to face interview he had with them they then said they were gonna use new rules hence his threat of legal action