Bankruptcy & Our home

BabsB_2

Hello there everyone,

Here is our situation at the moment.....this is one big roller-coaster!

My trustee is after their share of our home, we have 2 young children, both in full time employment.
The OR did not hand over my file to the Trustee until a week before my 3 rd anniversary of bankruptcy and they had to put a court order on the property for sale, which has been adjourned until we all come to an agreement(Jan 12) The Solicitors (for trustee) sent out a valuer, not from our area who over priced the house, and we hit back with 3 local valuations which were more realistic. Now here is the problem...whilst my bankruptcy was going through, my husband was also struggling and we had a charge put on the house, in his name which we have been paying £100 per month, every month for 3 years (for a car!). The building society will not release the further monies (from equity)to us to pay off the trustee until the charge is off. So we have offered 50% for full and final settlement for the charge (car), but they are refusing to play ball, not even giving us guidelines and we have said we could lose our home..just a point blank no. Any ideas of what we could do?
Also, the trustee has still not confirmed my creditors, as I have already paid about £16K to the OR. They have said they don't necessarily need to confirm them until all the money is collected from the equity in our home. My largest debt is a credit card of £31K, which was sold to Max Recovery and the solicitors dealing with that is low and behold the same solicitor who is dealing with my trustee...(apparently it is not a conflict of interest but I really can't see how it is not!). The rest of my debts are quite small.
My husband and I are at our wits end, there is a thought here that we do go to court and let a judge decide, we feel like we have been put under immense pressure when they had 3 years to sort this.
Any guidelines or observations would be greatly received.:(

silvercar

The building society will not release the further monies (from equity)to us to pay off the trustee until the charge is off.

Will they then be prepared to lend you enough money to pay off what you owe to the OR? Even with your current credit rating and being a discharged bankrupt?

BabsB_2

Morning,

Apparently, as we are already in the house they will release the money as there is equity. The problem we have, is we do not want a mortgage that we will not be able to afford the repayments, therefore the money we can release is only a certain amount, this is why we can only offer the charge people 50%.

Thanks,

kepar

Has the OR agreed a figure?
Also the car, can you not sell it or return it.
You personally are now a lot better off due to finishing your IPA, can't you save this extra for a few months?

I don't understand the comment about the CC, is there enough equity in the house then to clear your bankruptcy?

silvercar

kepar wrote: »

Has the OR agreed a figure?
Also the car, can you not sell it or return it.
You personally are now a lot better off due to finishing your IPA, can't you save this extra for a few months?

I don't understand the comment about the CC, is there enough equity in the house then to clear your bankruptcy?

I'm guessing that the house is owned jointly, so the OR could only ask for half the equity and the lender would be prepared to release enough of the equity to cover this. It wouldn't need to be enough to clear the bankruptcy.

Example - with made up figures.

Property value 100k, existing mortgage 60k. So the OR could ask for half the equity ie 20k. Now the lender may be prepared to increase the mortgage to 80k, giving the 20k needed for the OR. The lender may be prepared to do this because that gives a loan to value ratio of 80% ie some protection for the lender.

Of course this Car charge messes things up. To increase the mortgage requires the Car people to agree to a "deed of postponement" and they may not be willing to do that without the Car money being repaid. In their eyes, if OP is increasing the mortgage, they would like the money to be used to pay off the Car debt.

antrobus

As I understand things, where a bankrupt owns property and has equity in that property, the OR can and will go to court to get an order to sell the property in order to realise said equity for the benefit of the bankrupt's creditors. From the point of view of the 'car people' that is exactly what they expect to happen, at which point they expect to get their money back from the (non-bankrupt) husband's share of the equity. So there is no reason for them to 'play ball', 'issue any guidelines' or accept any offers that are less than 100p in the pound, because they see their debt as 100% secured. I would imagine that it boils down to a choice between (a) allowing the sale of the property to go through or (b) repaying the car loan by any means possible.

debtinfo

It would help if we had some figures to look at here

kepar

Can you please explain the situation of the car.
Your husband has been paying £100 a month for three years and yet there is £18k owing. What sort of deal was that. Surely there must be some equity in the car?

BabsB_2

Sorry about that, too much going on in the head. We were both on much more money then, and briefly explained, I had to leave the job, which my husband was also employed by. We could not afford the repayment so surrendered the car and that was the difference. They said they would freeze the interest on the phone to my husband and myself when the charge went on (we never got in in writing), last week they told us that they were adding the interest.