please please help!!! re bankrupty

gaz36uk

Hi everyone, hope someone can help me out here. I went bankrupt on the 16th may 2003, was discharge 1st April 2005. sent £60 of to the court for a certificate of discharge which I got.
About September i got a broker and started trying to buy my council house i am in full time work and can afford the payments now. She the (broker) got me an offer with rooftop mortgages .so a hired a solicitor (or should i say she did) to do the conveying.

Monday I had a call of the solicitor ssaying that they can’t continue with the sale as i have entries on the H M land registry saying I’m bankrupt.

Now I have been informed that i can’t get this removed unless i pay all the creditors (it’s called a annulled). But I have read on here of people being discharged and getting a mortgage no problem, yep they pay higher interest but still get a mortgage.

I have talked to my broker who says that this is a new law and you can’t get a mortgage if you have a entries next to your land registry.

I have not paid the creditors back but my official receiver says that i am discharge and this should not affect my right to get a mortgage.

As anyone had the same problem i get the feeling that something is not right because people do get mortgages after discharge and still owing the credits and they do not waiting five years .please help. Thank you.

silvercar

I am puzzled how you can have entries on the Land Registry for a property you don't own.

Putting that aside, if you did own your property and went bankrupt, the Official Receiver would register his interest on the Land Registry as a charge on your property. In other words he would be staking a claim on the equity left in your property after your mortgage is taken into account. So if you had a property worth £100,000 and a mortgage of £60,000, the OR would be staking a claim on the £40,000 equity. He would then want you to remortgage/sell up at some point so that that equity can be used to repay your creditors. Where that equity is small and could be swallowed up by redemption penalties and estate agent fees, it is possible for a relative/ partner to buy the beneficial interest in your property for a nominal sum plus costs (few hundred pounds). This effectively give you ownership of your house back.

In your case you don't own the property. Either someone has made an error and thought you did. (in which case I would inform the current owners of the property and let them sort it out - after all someone has put a charge on their property). Or the charge has been put on the property because there is the likelihood that you could buy the property at a discount and the OR would then want the right to claim some of that discount to repay the creditors of your bankruptcy. I would suggest speaking to the OR and finding out why that charge is in place.

gaz36uk

thank for the reply .the house is owned by sheffield city council. the entre is saying that i am bankrupt .
i am really stuck at this point as the broker and solicitors have both said they can not do anthing till i get this removed, just dont no what to do now .as i know discharged bankrupts who after 1 year of there discharge got a mortgage.
i though that when i got the offer that was it now the broker has had £400 of me and the solicitors have had £160 and both are washing there hands of me .

silvercar

COuld it be that the bankruptcy rules have changed and under the rules when you went bankrupt, it will take longer to release you from all obligations.

I still find it strange that there is a charge on aproperty that you don't own!
Speak to the OR, it may be that they will withdraw the charge. If they can't they should be able to tell you how to get the chrage removed, it may be that it will come off automatically. There was a thread on the Bankruptcy board that talked of April 2007 as a significant date in relation to property charges, but I don't know if it is relevent in your case. You could try posting on that board.