Surplus from a repossession sale

shouldhaveoffset

Hi there, I apologise if this is in the wrong place but I wasn't sure where to post.

My husband and I had our house repossessed around 5 years ago. I have now received a solicitor's letter saying that there are surplus funds to distribute. Not long after the repossesion my husband declared bankruptcy (I did not).

We were joint tenants not tenants in common. Does anyone know a) if my husband's bankruptcy and b) the type of ownership i.e. joint tenancy will affect whether or not I receive any surplus funds.

Any advice greatly appreciated.

Cheers

holly_hobby

As joint tenants the surplus should be distributed equally.

AFAIK - As joint debtors on the mge but you not being subject to the BO - your share is not claimable by the trustee in bankruptcy.

AFAIK - if your husband is discharged from his BO, and his receipt of funds are post discharge, with the delay in receipt of funds not being due to his actions, request or interference - I don't think he has to declare it to the trustee in bankruptcy (TIB), I am also presuming as the sol has contacted you with the prop already sold some yrs ago, there was no TIB interest noted with Land Reg.

However, I am not sure if it still has to be declared if the sale of the property & effective release of capital, was apparently within his BO period (with available capital just not advised as available by the sol until 5 yrs after the event), the TIB may argue that the monies should be distributed between his creditors, as the actual event occured during his BO period.

You need to have a chat with your hubbys previous insolvency practitioner for guidance.

But the good news is you actually got a surplus following a repo sale - its usually the lender chasing the mortgagors for the shortfall ... so well done !!

Hope this helps ....

Holly

shouldhaveoffset

Thanks very much for your reply. As far as I know I don't think that the house was actually sold before he was discharged (am not sure).

holly_hobby

Ok - as it was sold post discharge (with the timing not influenced by yourselves to avoid his BO period), and there appears to have been no official receiver registration with Land Reg on the property - IMHO I think that the capital is free for you to retain in its entirety

However, my expertise is in FS & Mges - and I am not an insolvency practitioner - my knowledge being restricted to basics only - so please get this checked out before you sleep easy.

CAB have fee free advisers or as I say contact your hubby's original insolvency pract. for guidance.

Hope this helps

Holly