Clawback and Undervalue Help Please

Sweetbriarrose

I hope someone can help, I cannot find the answers in the forum, forgive me if some has already asked these questions. I will try to explain as clearly as possible how and why I am seeking help.
My questions are regarding Clawback and Undervalue.
I have read that there is a time limit of 5 years when a insolvancy trustee can claim a Undervalue and Clawback.
A, Is this true.
B, Does the 5 years begin from the bankrupt petition date or the date the bankruptcy order is granted.
C, When the discharge date is reached can the trustee, start a claim for for assets, or to claim clawback or undervalue on assets he was already aware of.
D, Is there in law no time limit to when a bankrupt can be discharge, because this just seems to be going on forever with no end in sight.

This is a brief out line to what has let to the point I am at now
My husband was taken to court and lost the case 2010, the solicitors made him backrupt for their costs in March 2011, the bankruptcy was extended to March 2015,(when it was assumed it would be discharge as the trustee had not applied for a further extention), He does not know why it was extended at all.We thought that when discharge date came that would be the end of it.
The trustee is now pursuing me for CLAWBACK AND UNDERVALUE. I was not involved in the court case and I am not bankrupt.
I have a deed of surrended that was agreed in January 2006, due to my husbands poor health, my husbands interest in the house was signed over to me, I paid the deposit, paid the mortgage, bills and outgoings. and was working full time.
The deed was drawn up, signed and witnessed, this was 5 years and 6 weeks before the bankruptcy order, 9 years and 6 weeks before the discharge date. Despite this the trustee has obtained a court order for a hearing later this month,which was date stamped by the court 5 days after the discharge date.
The trustee has lied in his statement, making claims that are false.
They state that at the time the deed was made he was insolvent. False
The deed was made for no value, False
I applied to my home insurance policy cover for help, after 4 weeks of questions they say they cannot help, because they think I am bankrupt, which I am not and have never been.
I hope I have not made this to long and that you have read this far.
Any comments appreciated.

Decoctor

You need to look at the Insolvency Service Technical Manual (Google it) at paras. 31.4A.59 - 104. It covers all the issues pretty clearly.

Specifically in relation to your questions (but I'm not an expert on this)

A. B. Time limit is 5 years or less from date of transaction to presentation of petition (not BR order)

C. Yes. Discharge date is irrelevant.

D. Trustee can apply to,court to postpone discharge date in certain circumstances, eg if bankrupt does not cooperate. This can be indefinite in extreme cases.

You need to see a lawyer!

Sweetbriarrose

Thanks for the reply Decoctor.
I did not realise there was a manual, I have been searching for the answer to these questions for weeks. Without success until now.
I have found it, but it is not a easy read.
You are right I do need a good lawyer, ( as where I live they all belong to the same chambers,including the judges,) and especially as the deed was signed at a party for my Mums birthday exactly 5 years to the date of the petition. 1 week after we moved into the house. Ironic
The IS have known about the deed for the last 4 years and have done nothing until now. They have spoken to the witnesses, who have confirmed they knew what the deed meant, and when it was signed
My husband has cooperated fully with them. He is retired , he does not own anything of value, we are now separated for 2 years, there is only £i0 k of equity in the house. The trustee want money regardless of how much it costs to get it. The the charge for their services are £11k a year.
The bankruptcy debt at petition was£15k, at BO £40k, (solicitors change 8% interesti

debt_doctor

Hi,


I presume you are in England or Wales?
If so, this is relevant;


31.4A.60 Realising transactions at an undervalue where recoverable amount is over £5,000
As explained in detail in Part 1 of this chapter, all antecedent recoveries where the amount to be recovered is over £5,000 are handled by The Service’s antecedent recovery contractor (see paragraph31.4A.5). The advice and information in this Part of the chapter will assist the official receiver in understanding transactions at an undervalue and assessing whether there is a matter for recovery to be passed over to the contractor (or, in smaller cases, to be dealt with “in-house”).
The following are the areas on which the official receiver should, ideally, obtain information before instructing the contractor:

• Any connection between the beneficiary and the insolvent.
• The date of insolvency (as opposed to the date of the order)
• Details of any assets transferred.
• The date of the transfer
• The valuation of the assets transferred and details of the basis for this valuation
• Details of any consideration given for the asset.
• Any explanations given by the bankrupt or the insolvent for the transaction.
• Evidence of the asset position of the beneficiary.

As said, the relevant date is the date the petition was presented and the transaction being up to 5 years prior to that. IF, (and this is rare) it can be proven that the transaction was a deliberate attempt to put assets out of reach, then there is no time limit.
DD

debt_doctor

....also, was discharge from bankruptcy suspended? - and if so, why?
and
if not discharge suspended, was it a BRU/O that was issued, and if so, why?
Thanks.
DD