wrongfull bankruptcy now want to sell my home

ford2872

hi please can someone offer any help on my partners circumstances.
she was made bankrupt last january for a buisness loan she had some 14yrs ago she had £3000 unsecured loan from lloyds bank, her buisness advisor sold it to her along with ppi which was also splitt over the period of the loan..
she took this loan after she had opened her hairdresser she made prompt payments for 18months, and then after a dispute with her landlady over a electric test certificate, she went to work and the locks where changed on the property unabling her to trade and then thats when all this started.
firstly she informed the bank about her circumstances and was under the impression the ppi would cover her but was informed that it did not cover her as she was a sole trader ...

after all this time various agencies have bought this debt and last january , she was made bankrupt over the full sum of the loan all this was done in her absence.
The court appointed a trustee she had a year cooling off period and in this time applied for anullment.
she worked with a solicitor and supplied every bit of paperwork and all receipts for the last 13years , the court wanted to throw it out and lowell and co managed to get it adjourned.
buying themselves more time they produced a print out showing she had made three payments in 2005 she produced her bank statements showing no payments to them from her account and they could not say how the payments had been obtained but because my partners solicitor failed to write a report the judge went in there favour and told my partner to reapply for anullment.
now the insolvency firm have sent a letter saying that there applying to the court on 25/6/12 to take her only asset. which is her house. she is a joint owner ..
Any help or suggestions would be brilliant
thanks

PippaGirl_2

How much mortgage is on the house, and how much equity is there in it? Who is she joint owner with?

ford2872

they valued it at £90,000
and £28,000 owed on morgage
joint owner with previous partner 13yrs ago was unable to soley take the morgage on mainly to do with debt of the buisness loan.. even though she been paying it herself from the begining
thanks

debt_doctor

ford2872 wrote: »

she worked with a solicitor and supplied every bit of paperwork and all receipts for the last 13years , the court wanted to throw it out and lowell and co managed to get it adjourned.
buying themselves more time they produced a print out showing she had made three payments in 2005 she produced her bank statements showing no payments to them from her account and they could not say how the payments had been obtained but because my partners solicitor failed to write a report the judge went in there favour and told my partner to reapply for anullment.

Hi, all the time this bankruptcy still exists, the process will continue. Nothing will stop the sale of the house unless the bankruptcy is annulled.
I think she should concentrate on the part in your quotation; Why did her solicitor "fail to write a report" Is that their negligence? Have she asked what they are going to do to put that right for her, perhaps re applying for anullment.
Whatever happens it needs to be quick, maybe she should apply to a new specialist insolvency solicitors firm?

It would all appear to ride on whether the creditor proved that the 3 payments were genuine to the satisfaction of the court and therefore the statute of Limitations did not apply.

Urgent, very urgent action needs to be taken.

DD

ford2872

Thank you for your advice Debt Doctor she as written a full explanation to the county court about the whole thing even explaining the fact on how her solicitor had recommened a barrister to represent my partner on the day of the anullment. And he only had a five minute chat with my partner to try to understand the facts, Which in my eyes was a waste of time, my partner wanted to represent her self but was told that this was not allowed so we had to pay £150 for less than an hours work sitting in a room knowing nothing about the case facts !!.

She as been to see about taking on the solicitor for negleting her duties with another local firm but they didnt want to take the case.. But they advised her to try and seek help from a out of town firm we live in carmarthenshire do you know of any good firms in wales ?
thanks again

debt_doctor

Local solicitors do not like taking on negligence claims against other local solicitors, perhaps you should make a formal complaint to the law firm and possibly follow up with a complaint to the Legal Ombudsman.

However, this is a side running issue, the bankruptcy is marching on. I'm afraid I do not have any knowledge of expertise in the area where you live.
I wonder if this is worth a try, I found it by chance and have absolutely no knowledge of their service.
http://www.contactlaw.co.uk/how-insolvency-practitioners-can-help.html

Let us know how you get on.

DD

ford2872

Well went to court yesterday and despite our arguement the court granted weightmans llp the application for possession and the right to sell.. totally unfair no-one wanted to listen to us !!!

does anybody know if theres anything else we can do ? we still live in the house. what's going to happen now ??

PippaGirl_2

Sorry to hear this ford. Is the debt only £3000? Is it possible to raise that much somehow?

zzzLazyDaisy

How much does she owe under the Bankruptcy and can you afford to raise the money to pay it off?

As a side issue, it is highly unlikely that she was made bankrupt without her knowledge as she would have received numerous letters before bankruptcy became an option, and she would have been notified by the court of the proceedings.

I suspect that we don't have the full facts here.

JCS1

PippaGirl wrote: »

Sorry to hear this ford. Is the debt only £3000? Is it possible to raise that much somehow?

For an annulment there are 2 main grounds, ought not to have been made (i.e. proper procedures not followed), or on the basis of payment in full - and payment has to be all unsecured debt, not just the amount owned to the petitioning creditor, as well as OR and IP fees which I suspect will run into several thousand by now.

debt_doctor

What was your argument that you put to the court? The only 'argument' that can have any chance is a fresh application for annulment (on the grounds that the Order should not have been made due to the debt being Statute Barred) - and that likelyhood is fading fast.
Did you try that 'solicitor broker' link in my earlier message?

If the bankruptcy still stands and the property sold then as it is jointly owned, equity can be taken up to 50% of the total equity value. The remaining money is returned to the other joint owner.

DD