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davelacey
Posts: 196 Forumite
Hello all.
I voluntarily declared bankruptcy in 1996 - and heard nothing more from the OR until last week, when I had a letter informing me that they were applying to the Court for a "charging order" on my beneficia interest in my house, which is jointly owned by my wife.
The charging order is being made under the following regulations, quoted from the Insolvency Service website.
"New rules from April 2004
If you went bankrupt before April 2004 then it was the case that the Official Receiver could come back at any time in the future and sell your property. This has now been changed. The Official Receiver has 3 years from 1 April 2004 to deal with their interest in your property. After this date, if no action has been taken, your home will belong to you. This will apply to you if you are already bankrupt on that date or are made bankrupt in the future.
The Official Receiver will have these options:
* Come to an agreement with you about the property
* Sell your home
* Apply for an order for sale
* Apply for a charge on your home.
This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended, wanting to sell your home unless a charge is placed on your home. In this case the Official Receiver has 12 years to ask for an Order for Sale."
My question is: If the "cutoff point" for action being taken is April 1st, 2007, and the "charging order" that the OR is applying for isn't being heard in Court until June 6th 2007 - haven't they left it too late?
As a moot point, isn't "This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended," contradicted by "This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended, wanting to sell your home unless a charge is placed on your home. In this case the Official Receiver has 12 years to ask for an Order for Sale."
I voluntarily declared bankruptcy in 1996 - and heard nothing more from the OR until last week, when I had a letter informing me that they were applying to the Court for a "charging order" on my beneficia interest in my house, which is jointly owned by my wife.
The charging order is being made under the following regulations, quoted from the Insolvency Service website.
"New rules from April 2004
If you went bankrupt before April 2004 then it was the case that the Official Receiver could come back at any time in the future and sell your property. This has now been changed. The Official Receiver has 3 years from 1 April 2004 to deal with their interest in your property. After this date, if no action has been taken, your home will belong to you. This will apply to you if you are already bankrupt on that date or are made bankrupt in the future.
The Official Receiver will have these options:
* Come to an agreement with you about the property
* Sell your home
* Apply for an order for sale
* Apply for a charge on your home.
This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended, wanting to sell your home unless a charge is placed on your home. In this case the Official Receiver has 12 years to ask for an Order for Sale."
My question is: If the "cutoff point" for action being taken is April 1st, 2007, and the "charging order" that the OR is applying for isn't being heard in Court until June 6th 2007 - haven't they left it too late?
As a moot point, isn't "This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended," contradicted by "This means that you should not be left with the possibility of the Official Receiver coming back years after your bankruptcy has ended, wanting to sell your home unless a charge is placed on your home. In this case the Official Receiver has 12 years to ask for an Order for Sale."
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Comments
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I've been trying to get answers on a similair topic. I was BR'd in June 2003, discharged April 2005. The OR has only now appointed a trustee and is trying to stake a claim in my ex wifes house which my interest was handed over as part of a divorce settlement in 2000.
They are also trying to get me to hand over details of my income, even though an IPA cannot supposedly be enforced post discharge.
The rules are very murky and basically they seem to be able to do whatever they want, even after discharge.
Like I've said before BR is not the panacea that some on here make it out to be. Be warned.0 -
I think you will find the fact that they have applied to the court secures their interest within the 3yr rule Im afraid.
Im home from work for lunch so have little time...I will post more details of my knowledge later. I have become a bit of an expert in recent weeks on the whole question of beneficial interest0 -
In most cases, if your beneficial interest in your home has not been sold by the third anniversary of your bankruptcy (or by 1 April 2007, whichever is the later), it will cease to be part of your bankruptcy estate and will be returned to you.
Exceptions include: trustee has already applied for orders regarding sale, possession or charge on property - or 3 years from becoming aware of asset.
The approach of 1 April 07 is no doubt making trustees actively review outstanding files. All they have to do is start the process before 1 April even though the court hearing is afterwards.
Insolvency Service site has details.0 -
Yes, I realised that from ploughing through THIS ARTICLE.
An awful lot of bankrupts from 10/15+ years ago are going to have insidious little surprises sneaking up on them.
Especially when, as I was informed, the amount of beneficial interest accrues an 8% per annum interest charge.
@dizzydeb: I look forward to it.0 -
I've been trying to get answers on a similair topic. I was BR'd in June 2003, discharged April 2005. The OR has only now appointed a trustee and is trying to stake a claim in my ex wifes house which my interest was handed over as part of a divorce settlement in 2000.
They are also trying to get me to hand over details of my income, even though an IPA cannot supposedly be enforced post discharge.
The rules are very murky and basically they seem to be able to do whatever they want, even after discharge.
Like I've said before BR is not the panacea that some on here make it out to be. Be warned.
Hi macsacel,
I for one have never viewed bankruptcy as an easy option or a panacea; I think that sometimes when there seems to be a jovial atmosphere or light hearted comments being made it's just a case of people making the most of a bad situation.
Richard0 -
I too am trying to understand the 'rules' on beneficial interest in the matrimonial home. I was made BR in October 2006, and have had a letter, from my 'trustee' stating that the house will form part of my 'estate in bankruptcy', but have heard NOTHING since. My wife, who is not bankrupt, received the same letter. As far as I can understand, they can ONLY claim the bankruptee's beneficial interest.
The whole system appears to be open to interpretation.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
I too am trying to understand the 'rules' on beneficial interest in the matrimonial home. I was made BR in October 2006, and have had a letter, from my 'trustee' stating that the house will form part of my 'estate in bankruptcy', but have heard NOTHING since. My wife, who is not bankrupt, received the same letter. As far as I can understand, they can ONLY claim the bankruptee's beneficial interest.
The whole system appears to be open to interpretation.
In my case it was £17000, and the OR informs me that's the amount of money he will require to satisfy the bankruptcy - he isn't pursuing 50% of our home - which is my actual beneficial interest.0 -
Hi macsacel,
I for one have never viewed bankruptcy as an easy option or a panacea; I think that sometimes when there seems to be a jovial atmosphere or light hearted comments being made it's just a case of people making the most of a bad situation.
Richard
I'm just talking from experience, becoming bankrupt was thrust upon me, and I'm glad it happened. I just think theres a general feeling of, "go bankrupt all your worries will be over" going on.
It's 4 years since when I went bankrupt and nigh on 2 years since discharge and I'm still having to deal with it.0 -
It's 4 years since when I went bankrupt and nigh on 2 years since discharge and I'm still having to deal with it.
That scares me...the only reason I m going bankrupt is so this will all be over and you're saying it might not be???Debts Jan 2014 £20,108.34 :eek:
EF #70 £0/£1000
SW 1st 4lbs0 -
I think there is one hell of a difference in struggling with all your debts, creditors, debt agencies, bailiffs, threats, demands.. all the other words that appear every day when you are that desperate you have to go bankrupt. Bankruptcy certainly is the final straw.
However it is also a lifeline to people like me, and im sure countless othere here. I am now able to start to try and plan a future. if I still had £130k worth of debt, im sure that would take a lot longer to deal with than what my bankruptcy will take to deal with.
Nearly 6 months on since mine, there isnt a day goes by where I dont think about it, im sure that will happen for the rest of my life. I for one dont take bankruptcy as a panacea, as Im sure the vast majority of people here dont either.
It is something that, administration wise you are dealing with for a relitivley short time, the more complex a bankruptcy.. of course its going to take years to sort out. Certainly not as long as dealing with the debts I had thats for sure.
Mike0
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