Bankruptcy & keeping the house by paying the equity?

brummyjimmy

Hi there,


I am after some advice please.


My brother in law is on the brink of bankruptcy, he owes £20K of which £7K is to the taxman as he is self employed.


There is between £1 - £7K of equity in his property, my question is, if he goes bankrupt & the £20K is written off, can he buy the equity off the official receiver to keep the house?


Does anyone have experience of this? Is the Official receiver quite open to this? Does anyone know what valuation they would use?

Any advice on this would be most appreciated.

Thanks in advance,

CKhalvashi

It will need to be quoted by the OR, as there are other costs in this.

Property isn't my specialist area (unsecured is), so someone will be along to offer advice probably later today.

CK

brummyjimmy

Thanks CK- appreciate your time.


Does anyone have any knowledge on the valuation / costs involved of buying any potential equity at all please?


Many Thanks,

luvchocolate

Hi sorry I cannot help but wanted to say the site is usually quiet at weekends so please don't worry someone will be along later.

TinyToes

possibly slighty different as in scotland and diff rules apply.

We didnt have any equity in our property but chose to buy our trustee's interest. We had to pay for a chartered surveyor to come and formally survey our home and he then sent this valuation to our trustee, we also had to get settlement figures from our mortgage company too.

It couldnt be us that bought the BI in our home as we were bankrupt and had no excess funds. We had to get a relative to do this for us.

if he had 5k equity then i assume the OR would want the full 5k.

debt_doctor

Hi,

Perhaps look here................
https://forums.moneysavingexpert.com/discussion/4503149

DD