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HICKERYDICKERY

hello, I'm new and would appreciate some advice.Myself and partner BR Jan 09, both discharged yr later. equity in prop, were offered to pay back BI last year and agreed price, however we couldnt raise the funds so nothing has happened, what is likely to happen now?

dojoman

Sorry, don`t know the answer, so bumping back up the board.

Ineedaname

Another Bump

HICKERYDICKERY

Good Morning, I'm bumping myself! Does anyone have any ideas on this, thank you x

debtinfo

Can you give some details

HICKERYDICKERY

Hi Debtinfo, Family were going to help us out, BI agreed amount £15 K,

debtinfo

Presume jointly owned

Have you had recent valuation, mortgage statement. Do you think the equity is the same now.

Do you have a separate trustee or the OR.

Was the 15000 between you or each

HICKERYDICKERY

Presume jointly owned YES

Have you had recent valuation NO, mortgage statement NO. Do you think the equity is the same now. OBVIOUSLY PAID SOME OFF MORTGAGE BUT SORT OF HOPING VALUE HAS GONE DOWN BUT CAN'T BE SURE

Do you have a separate trustee or the OR. RTLU

Was the 15000 between you or each BOTH

I appreciate your help.

HICKERYDICKERY

Hi, just wondering if Debtinfo can help any more as I posted answers to their questions a few days ago, appreciate the help, thank you

debtinfo

Hi Hickery,

ok the first thing is you want to be sure of the value of the equity, but lets assume that is £15,000. Bankruptcy is individual so this means that you each have equity of £7,500. The OR has 3 years to start an action against the property, ill come back to this in a minute.

The good news is that if they dont start an action prior to the 3 years deadline then you just get it back automatically.

The bad news is that unless you get extremely lucky and they forget about you they are likely to take some action.

there are several options that they can do, 1st they could offer it to you again to buy the interest, would you be in a position to do this?

2nd they could ask for a charge to be put on the house for the value of the equity, this would just sit there until you sell the house at which time they would get paid out, the charge does accumulate interest at 8% per year.

3rd they could apply for a sale of the property to get their equity.

Now the reason you need to know how much equity there is, is as follows, Whilet the OR can do any of the above if they want to they ususally do option 2 if your individual equity is less than £10,000 and option 3 if your equity is above £10,000.

When i say start an action i mean exactly that, they dont have to complete it before the 3 year date, just start it, which they can then follow to completion. so in the case of option 3 they could in theory make the application to yourt up until 1 day before the year date

HICKERYDICKERY

Hi Debtinfo, thanks for the info, when you say if they don't start action before 3 years we would get it back do you mean that even though we have had previous correspondenace with them re buying back BI etc if they don't mention it again before 3 years are up, it would automatically come back to us? Thats how I've read it but can you just clarify please.

Also when you say they could put a charge on against equity until sale, presumably this would be the equity at time of sale and not what it is currently?

I really appreciate your help and advice Debtinfo.