bankrupt owns home ?

oopps

Hi guys I have been worried for some time and need to discuss on here - I am in a mess:

During the 1990s I went bankrupt for about 40K. After going bankrupt and speaking to the OR I was sleeping rough anywhere I could and had no fixed abode. I slowly turned my life around and during 2003 I wanted to buy my first house so I went to a solicitor and ran a bankruptcy check and it came back clean so I brought a house. I have since ran 2 limited companies, taking credit (which I have paid off) and generally got on with my life. Incidentally I have a wife and 2 children (one of whom receives disability benefits). Things have been very tight but I have managed to stay okay-ish.

I recently learned that I am still bankrupt as (I know now not then btw) that a year after I went bankrupt the bankruptcy was indefinite. It is likely I was supposed to appear in court to answer some questions (I guess) and as I never knew I didn't turn up so...

So I find myself in a very weird and dangerous position: There is I imagine about 30K of equity in the house (which is just in my name) and despite me really not knowing that I was bankrupt all these years I have being unknowingly committing fraud (which I believe is not fraud as you need to know for fraud?)

I really am very worried - not so much for myself but more for my children and wife. I have been weighing up options (truthfully some macabre to just running to another country) and really don't know what to do. Help!

Action_Jackson

How did you find out you are BR? Are you absolutely sure you are BR? Have you double checked the Insolvency Register online, searched The London Gazette?

How long after the BR date did you become homeless?

It seems odd that a solicitor came back with a negative BR check AND you managed to get a mortgage and other credit.

I'm no legal expert, but surely if a solictor advised that you are not BR, and you took credit in good faith honestly thinking you are not BR, I don't see how this would count as fraud.

Maybe if you can give a bit more info about the chronology of events, someone else here might be able to advise in more detail.

Are you in a position to seek professional legal advice?

iquit

Hopefully you'll get some more experienced help from the forum. You may need to give the forum more info though. How did you find out you're still BR? Have you gone onto the insolvency website and done a search of your name? When you filed for br in the 1990's did you attend court and get a br number? From my limited knowledge it seems unlikely that you are still BR. Especially if a previous search by a solicitor didn't find anything. Also you've managed to build a life with a mortgage and credit etc I imagine banks would have 'caught' you by now! Unless you've not declared your financial past when asked the question - have you ever been BR? BR usually lasts one year, unless your circumstances were exceptional & you were uncooperative, then you could end up with a BRO. If you remember your court maybe you can get your number etc and then ring the insolvency office that handled your case and find out exactly what your BR situation is. Then if needed seek legal advice. Good luck.

Flyright

It is entirely possible for a person to be indefinitely bankrupt if any aspect of non-cooperation leads to the trustee seeking an indefinite suspension of discharge, which will be recorded on the insolvency register in the public domain. The OP needs to get in touch with the OR straight away.

thick_tom

seems a bit unfair to make bankruptcy a life sentence.

Flyright

Not at all. A bankrupt has a legal requirement to cooperate with the trustee.

oopps

thanks for the replies.

I have checked the register that is how I know. I went homeless within 3 months from my interview with the OR from what I can remember (this was nearly 20 years ago). When I have been asked the question about whether I am BR I have answered no as I believed I wasn't.

I wish I had solicitor all them years ago: the main trustee was the MOD and despite saying and answering all the questions I could do truthfully the OR seemed very uncooperative to forward my case at all - I remember seeing a letter that proved the MOD had people on my case following my movements and offering the OR any assistance they could in investigating me... as they were/had done already. This was part of the reason I was homeless: I had lost my rented home, the majority of my 'friends', my gf at the time, and had people from the MOD knocking on my door and following me from pillar to post ~ it is no surprise that it causes paranoia.

I am going to find a good solicitor and see what happens - we have already written off the house - hopefully it can get resolved and I can get on with my life.

It does anger me when companies like NRAM and the world of bankers bonuses and big multinational tax-dodgers, bankruptcy tourists and the like...

I'll just have to work out how much law I can afford

Action_Jackson

The OR technical guide says that the OR must inform the bankrupt of what steps are required to lift the suspension of discharge.

As uncomfortable as it may be, Flyright is correct. There are some mitigating circumstances here (the solicitor's bankruptcy check), so hopefully they will take that into account.

Really feel sorry for the OP, as they probably thought all of this was just a bad memory now.

Sorry, missed this bit:

the main trustee was the MOD and despite saying and answering all the questions I could do truthfully the OR seemed very uncooperative to forward my case at all - I remember seeing a letter that proved the MOD had people on my case following my movements and offering the OR any assistance they could in investigating me.


A little confused - do you mean the MOD was a creditor? Who did you owe money to?

oopps

Action_Jackson wrote: »

Sorry, missed this bit:

the main trustee was the MOD and despite saying and answering all the questions I could do truthfully the OR seemed very uncooperative to forward my case at all - I remember seeing a letter that proved the MOD had people on my case following my movements and offering the OR any assistance they could in investigating me.


A little confused - do you mean the MOD was a creditor? Who did you owe money to?

Yes I did / do. I had a 3 year fuel and car advance. I bought a car and crashed it, where I ended up in hospital and subsequently off work for a considerable time (a year) and then lost my job due to al the time 'off' work.

oopps

As an update I spoke to a solicitor today and I have to gather some money together to proceed (with his help).

I need to apply to the court to get my order reinstated - I ought to have been advised how to do it years ago and wasn't... this is wrong. He said it is likely that the vast majority of the documents pertaining to me have been destroyed as it was so long ago. Upon doing this and declaring my interest in a house the OR will have 28 days in which to say they want it.

Once 'poking the dog' the issue has to be dealt with one way or the other, the solicitor said it is likely a judge will find this unfair to continue my bankruptcy indefinitely... especially as I repeated back then (and now) that I wish to answer any questions. The OR who was dealing with my case is likely retired or dead so I am a little unsure as to what is going to happen. I'll keep you lot updated and let you know what happened.

I just need to find £1200 to advance the solicitor to get to work...

iquit

Good luck.