Help please! 18 months and its still going on!

ethant

Hello,
I went bankrupt in Feb 2014. Feb 2015 this year I received a letter saying my case had been passed to the Long Term Assets & Distribution Team (RTLU I think). It's 18 months and still nothing heard.

I went bankrupt as I had 7 BTL properties and had one thing after another and then lost my son which meant I lost all focus on the properties. All were repossessed when I went bankrupt. I have read bits about having to wait 2 years and 3 months til the RTLU have to do anything. The properties were already repossessed when I went bankrupt. Can anyone help with any advice or know what is likely to happen? Many thanks.

silvercar

Firstly, sorry for your loss.

If the properties were repossessed before bankruptcy (and in a lot of cases also afterwards) then any shortfall between the mortgage and the sale price falls into your bankruptcy. If there was any equity released as a result of the sale then it would go to paying off creditors. Any further money, if it exists, would pay the costs of handling the bankruptcy before eventually being repaid to you.

The 2 yrs 3 months refers to residential home that you are living in, so not applicable to BTL.

ethant

Dear silvercar

Thank you so much for replying so quickly. That is a relief that it will not be another year. Over the properties there was a negative equity so I dont believe there is any equity released. Do you have any idea on what RTLU are doing now & how long it may take from this point?

Many thanks

tigerfeet2006

You will have been discharged from BR as of February this year,

The RTLU are a separate matter and they are just dealing with the houses and there is nothing you have to worry about now. Property always takes longer than the 12 months to sort but you don't need to concern yourself with it at all. They may, that's may, contact you if any queries pop up with the properties and you just reply to them to the best of your knowledge.

ethant

Dear Tigerfeet,

Thank you so much for the reply.

Do you really thing I have been discharged? I checked the register and my name was not it. I know its the last 3 month so that is June-Aug. But you think it may have happened before that and they simple did not advise me?

The RTLU will take a long time do you think with the houses then?

Thank you again so much for helping me. Very appreciated.

tigerfeet2006

You are automatically discharged after 12 months. It's automatic so they don't notify you that you are discharged. Your name then drops off the IS register 3 months after discharge, so you won't find it.

Don't worry about the RTLU, they are just the admin branch of the insolvency service and deal with any paperwork and tidy up the loose ends. You can just carry on as normal and live your life as a non BR person.

ethant

Thank you Tigerfeet and all of you!

YES! I called them. I have been discharged!!!

Does that mean they can no longer investigate me or what I earn?

owlet

That's right, you are free as a bird, no longer bankrupt & all income etc is yours :-)

owlet

As you didn't print off copies of your discharge, it would pay you to contact your OR &ask for a letter confirming discharge. You may need it at some point.

Enjoy the next couple of months then start to clean up your credit files. There's a sticky explaining this.