Trustees selling our home

mumbly

My husband went bankrupt in Feb 12 and discharged in Feb 13. The trustees are selling our home to cover the bankruptcy leaving us with nothing (as the house was in my husbands name only).
The trustees are threatening us with a forced sale, so we are looking for a rental property at the moment. What happens to our vacant property when we leave? Who is responsible for it?

We stopped paying our mortgage in Aug when we were threatened with the forced sale so are currently almost 3 months in arrears. We are hoping to move within the next 3/4 weeks.
I am worried as the house will be vacant over the winter. Who would be liable if the pipes burst? Will any council tax be due and from who? We have had so much stress over the last 2 years and just need to move on and start afresh, I don't need any stress from this house to follow us.
Any advice greatly appreciated.

fermi

Property is not my thing, so a slight nudge up the board.

debt_doctor

Hi,

31.3.28 Council tax
Council tax is a tax set by local councils to help pay for local services. There is one council tax bill for each dwelling, whether it is rented or owned. Generally speaking, the occupier(s) of the property are the liable person(s) for payment of the tax.
Where a property is unoccupied, the legal owner(s) is/are, generally speaking, the person liable for payment of the council tax. A property is exempt from council tax where the liable person is a trustee in bankruptcy (which will only be the case where he/she has legal title) or the property has been taken into possession by the mortgagees (see paragraph 31.3.33). The exceptions apply even if the property is furnished, and will still apply if the trustee is liable with someone other person.


31.3.58 Insurance
The official receiver should obtain insurance (including public liability insurance) where required, following the guidance in Chapter 49.
In essence, this will be required where the insolvent is the legal owner of the property, there is no (or insufficient) existing cover, and/or where the insolvent is owner and/or occupier and there is a particular risk of damage to people or property near the building.

My view is that you are not responsible for the council tax and the OR is responsible for insurance against burst pipes and other matters if you don't have any cover in place.


DD

mumbly

Thank you so much debt doctor, this is a weight off my mind. I have been so stressed with the entire situation and just want to start afresh.

mumbly

We have been accepted on a rental property so we will be moving in 3 weeks. Still not heard anything from trustees. Do we just let the mortgage people know when we vacate the property?

silvercar

mumbly wrote: »

We have been accepted on a rental property so we will be moving in 3 weeks. Still not heard anything from trustees. Do we just let the mortgage people know when we vacate the property?

You should let them know as they will be responsible for insuring it - if they want it insured. Be careful that your husband doesn't sign anything accepting liability for the debt. When the property is eventually sold, any shortfall on the mortgage falls into your husband's bankruptcy. Often lenders claim they "require" you to sign something before they will accept the keys back. Ignore them. If they want it to be empty and waste months in getting a repossession order they can.

alastairq

Good point about 'not signing anything'....however, I don't think this is a re-possession, but a sale to realise assets-in-BR?

So there probably won't be a 'shortfall'...[otherwise, why would a Trustee.....[or is it 'trusty', like in prison?].....want to 'force a sale?]

silvercar

alastairq wrote: »

Good point about 'not signing anything'....however, I don't think this is a re-possession, but a sale to realise assets-in-BR?

So there probably won't be a 'shortfall'...[otherwise, why would a Trustee.....[or is it 'trusty', like in prison?].....want to 'force a sale?]

Valid point, but if you hand the keys back the lender will call it a voluntary repossession and charge for that and by the time the lender charges interest on the arrears and any other sundry items they can think of, there could well be some negative equity.

mumbly

The trustees are threatening us with a forced sale as they are saying we have been un co operative. This is not true. I had actually thought selling the house was in my favour as I would get my half share of the profits. Anyway because the house is in my husbands name we have found out I get nothing! My husband went bankrupt in Feb 12 and have stayed in the house so far but it is a big expense and feel it's like a noose around our necks. So we are moving out on our terms before being forced out.
I am worried that the house may take a while to sell (so does the mortgage company keep adding mortgage payments on to the mortgage? Thus increasing the mortgage) There is still quite a lot of work to do outside the house and we have found out that the field in front of our house now has a planning application on it.

I just want to move on and not be worried about anyone coming after us for yet more money.