Debtor Threatening Bankruptcy If I Don't Accept Figure

maximumme

I took a debtor to court for a £40,000 debt and I won. I have also registered a charge on a mortgage free property he owns worth around £150,000.
His solicitor has contacted me and offered £6,000. He says if I don't accept, then the debtor will declare himself bankrupt. If he did go bankrupt, would the property be sold, and would I be paid, or would other debts be paid before mine?
Would a court allow him to go bankrupt just so he can avoid paying the money he owes me?

Thrugelmir

Are there other charges on the property. That rank before yours. Property might be mortgage free but others may have first bite.

No money but employs a solicitor. Speaks for itself!

maximumme

There are no other charges on the property according to Land Registry documents. He has the money - he just doesn't want to pay me. My solicitor reckons his legal fees could be around £10,000 as this has been going on for 3 years and been to court twice...

pvt

So the simple questions are:

- will you get more than £6k if the debtor goes bankrupt?
- can you wait until the house can/will be sold in order to get your money back?

It seems unlikely that you won't better the £6k if they do go bankrupt, so it seems worth it for the gamble to call his bluff.

Thrugelmir

maximumme wrote: »

There are no other charges on the property according to Land Registry documents. .

Who owns the property? I've known cases where the individuals themselves own next to no assets directly. Which makes recovery impossible.

maximumme

The property is owned by him, with no other names on the Land Registry document. My solicitor has suggested we force the sale through the court asap, hopefully before he declares himself bankrupt.

Pixie5740

I would gamble the £6k and make the git bankrupt.

Thrugelmir

Pixie5740 wrote: »

I would gamble the £6k and make the git bankrupt.

At least there's a sense of payback.

tomtontom

Pixie5740 wrote: »

I would gamble the £6k and make the git bankrupt.

BR isn't a big deal to some people, with careful "financial planning" and the very generous BR allowances it may not hurt him at all.

I don't know what the answer is, but I wouldn't expect this scumbag to feel much pain from being made BR.

maximumme

So, if he did go bankrupt, what would happen to his £150,000 property that I have a charge on? Anyone know?

Thrugelmir

maximumme wrote: »

So, if he did go bankrupt, what would happen to his £150,000 property that I have a charge on? Anyone know?

Forced sale.

Is he the only owner?