Discharged bankrupt but need to remortgage

poorperson

I need a spot of assistance and cannot find exactly what I'm looking for in all the "bumf" I've got and have been advised to try the mortgage board……

One of my sons has decided to get married and of course, he's got nothing. We are thinking of remortgaging but before we do, we need to know if the OR is going to pounce and for how much. To make matters clear I could not purchase my wife's interest in the house when she was made bankrupt in 2001 as every penny went into the business we had. Under the new act the OR (who was the trustee but applied for release from his duties early because we had no assets to pay creditors) should approach my wife before the 1st April. What happens if he doesn't? If we apply for a remortgage now I imagine the OR will get to know as there is A Caution marked on the Land Registry (can I find out who put the Caution on or would it have been the OR and what is the difference between A Charge and A Caution). Basically, what I need to know is if we do manage to get a remortgage, how much the OR is going to sting us for. By the letter of the law, my wife does not owe any money to creditors now having served her penance but obviously the OR is waiting in the wings. On release from his trustee duties the OR sent a summary of his Receipts and Payments meaning the present administration had been completed. At the end of the day, the balance due to the OR was £741.62. Creditors (of which I was the second largest) were owed £45000. If we get an advance, can the OR only take his amount + interest (what is the going rate?) or could he take my wife’s entire share and dish it out to creditors. Personally, I don't see how as most would have been covered by insurance. If this is the case, how would he share it out? Equity in house now is probably about 80000. Could sell for 100,000 but 20000 outstanding. Was nothing in Feb. 2001 when she was made bankrupt. She’s been discharged since 2/2004 and the bankrupt details should (?) disappear from her credit file at the end of this month. I realise of course that the OR will not go away. Just hoping that he'll not try and grab too much back.

In one of the leaflets produced by the Insolvency section I came across a paragraph "if the beneficial interest in the home has not been sold by the third anniversary of your bankruptcy (or by 1/4/2007, whichever is the later), it will cease to be part of your bankruptcy estate and will be returned to you. My head is swimming at the moment so can I take it that this means the OR will be no longer interested in the property after 1/4/2007. He hasn't applied for an order for the sale of his house or possession etc. Am I on the wrong path? As my son is getting married shortly I would like some extra cash for him and his family so this means a remortgage. I don't want much (30000; 10 for us/him and 20 for the Bank of Ireland). By applying for a remortgage, can I assume that the OR will be alerted by the Land Reg and that he may come back and tell us we've got to sell? If we had to sell, what would be his share? Would creditors be in line (I was the 2nd largest) for a pay out when we've already been told at the bankruptcy that there were no assets.
Perhaps the OR himself is the best bet but I didn't want to upset the apple cart but he was going to be aware anyway if we did apply for a remortgage.

Bit of a long one this and apologies if rambling on, but if anyone can help, it will be greatly appreciated. If any further info required, just let me know.

maryotuam

Why give yourself grief by giving your son so much money? I'm sure he'll understand that you actually have no real money to give and wouldn't want you to go further into debt!

LisaT186

Can't help on the Bankruptcy side I'm afraid but as maryotuam has said, why go further into debt for your sons wedding? I got married last year and we had nothing from my husbands side of the family at all, not even a present. I was lucky that my parents could help, but we arranged our day subject to the budget we knew we had. It's lovely that you want to help, but please don't risk your home.

silvercar

This explains a caution:

"Registering a 'caution' against a Land Registry title is a method of ensuring that the registered property cannot be sold without prior notice to the cautioner, who claims an interest of some kind in the property concerned.

Any prospective purchaser of the property will require the vendor to get the caution removed from the title before the purchase proceeds. This is done by a process of 'warming off' the caution by means of a notice lodged with the Land Registry and sent to the cautioner who is then obliged either to make good his claim on the property or have the caution removed from the title."

I would think remortgaging would have the same effect as selling, the OR (in your case) would receive notice and have to act on his caution. If he didn't act (in time) the caution would be warmed off.

silvercar

here is a good link on what the OR should do when faced with notice about a caution:

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/withdrawalofacaution/withdrawal.htm

What I find interesting is the number of references to the OR having to act "without delay" and "speedily" etc to comply with the Land Registry deadlines; I wonder if cautions have slipped through the net?

poorperson

Thank you for your replies; must seem like deja vu for you silvercar. The thought had entered my mind about giving my son nowt as he's had plenty over the years. My wife doesn't think like me unfortunately. I'll have a look at the site advised by silvercar and take it from there. Just one thing silvercar, would it have been the OR who put the caution on or could it have been one of the other creditors?

silvercar

logic states it should have been the OR, as they have a need to in these circumstances; that said there would be nothing stopping a creditor putting a caution on. You must be able to find out who put the caution on as the Land Registry must know who they need to notify.

poorperson

Hi silvercar

Yes I can find out who put the caution on. The nice people at the land Registry say "give me three quid and you can see".

I found some further information regarding cautions and figured out that the OR can take his share of the proceeds if the property is sold but there's nothing mentioned on the site regarding remortgage. I've sent off another enquiry.

poorperson

I gave the nice people at the land registry and probably as expected, it is the OR that has the caution. I asked my mortgage company for a further advance (small) instead of remortgaging as I had been told that it was unlikely that the OR would allow remort. 'co it would reduce his pay out. As it happens, although there seemed to be no intitial problem with my further advance application, it turns out I can't have one because of the caution. Only to be expected I suppose. I am starting to feel very bitter about the whole situation. If I had been a criminal I could come out of jail and started with a clean sheet but because we lost our business trying to make an honest living it seems we are going to be punished for the rest of our lives. Unless the OR forgets about us until after 1/4. Im sure but not 100% positive that if he takes no action before then regarding our property, we can ask him to return the interest to us under the new bankruptcy rules. I'm sure one can keep me right on this. My interpretation is I can grab it back.

geniejj

When I was threatened with bankruptcy I spoke to Emerald who gave me some good advice. May be worth giving them a call 0800 043 4141.

poorperson

Thanks genie. I'm just waiting for the first of april now; providing the OR doesn't get to us first.