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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?
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  • dojoman
    dojoman Posts: 12,027 Forumite
    Sorry, don`t know the answer, so bumping back up the board.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • Ineedaname
    Ineedaname Posts: 3,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Another Bump
    When I joined, I needed a name. The forum members gave one to me...I am INAN :D
    "Fortunes ebb and flow and a boat must move with the tide and be thankful that it floats." Judith Allnatt
  • Good Morning, I'm bumping myself! Does anyone have any ideas on this, thank you x
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    Can you give some details
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • Hi Debtinfo, Family were going to help us out, BI agreed amount £15 K,
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    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
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • 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.
  • 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
    debtinfo Posts: 7,012 Forumite
    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
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • 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.
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