Having to pay £42000 to bankruptcy trustee for a £3100 debt!!!!

sestarkey

My husband was made bankrupt last year for a dedt of £3100. The trustee he was assigned said that with the debt, court costs and his fees he now owed £27000. We have been paying an IPA of £200 pounds a month since December so have paid £1400 into our bankruptcy estate. We have now sold our house and the trustee is taking 50% of the assets from the sale this means that we will be paying £42000 to the trustee and no account has been taken with regared to the IPA we have paid or how much we owe. How can this be right, legal and moral. Is there anything we can do or do we just have to accept this?:mad:

tigerfeet2006

Was the £3100 debt his only debt?

Anondebtadvisor

I can understand why you are angry, that is ridiculous!

Have you asked the IP for a breakdown of his fees? they should provide you with a statement.

Did you sell the house or did the trustee get an order for sale?

Vickisaver

Once all the debts have been settled, and the costs and expenses of the bankruptcy met (including the Trustee's fees), any left over funds are normally returned to you.

It's not ideal, but I would suspect you will get money back at some point, though could be some time.

debt_doctor

Hi,
I completely agree that the fees of IP's for what amounts to little more (in many cases) for property conveyancing are outrageous.

You could indeed ask for a break down of costs and make a formal complaint if thought neccessary but fact is you will still end up paying substantial costs.
Out of interest, was it a credit debt, council tax / IR or something else?

DD

debtinfo

I think it may be worth waiting for the OP to answer Tigerfeets very pertinant question before condemning the IP

debt_doctor

I was condeming IPs in general.

Gimpsdad

Are you condemning the OR who appointed the IP to act as Trustee?

If so, you would be better venting your spleen at the Government, who make the rules. That would fall under the remit I suspect of the Insolvency Service.

Let us know how your complaint gets on.

debtinfo

As you well know, the OR does not get to decide who the trustee will be.

coolcait

If it's a Scottish bankruptcy, then the trustee is appointed by the court - and the petitioning creditor says who they want to act as trustee. (Things are a bit different in cases where someone applies for their own bankrutpcy).

OP, it would be very helpful to have some more details, so that we can advise you better on your situation.

I'm not sure how much you've been able to find out about how bankruptcy works, but I suspect that there may be some confusion going on here. For example, you talk about 'we' paying money into the bankruptcy - and I know that's how it will feel - but it's only your husband who is BR, so it's really only him who is paying the IPA. And it's only his share of the house sale which is going into the bankrutpcy.

The key question has alreayd been asked. Did your husband only owe money to the creditor who made him bankrupt? Or did he have other debts too?