Debtor Threatening Bankruptcy If I Don't Accept Figure

andyfromotley

I don't know the legal position but surely the key question is how much does he owe in total? If he owes £500k to other debtors then your share of his asset will be pro rata i assume? (about 8% of £150k).

Can you put a charge of some sort on his house?

TBH if you have a solicitor i would follow his advice.

pvt

It seems pretty clear from the OP that the debtor is far from insolvent, so I would suggest it would be very difficult for them to go bankrupt.

pvt

andyfromotley wrote: »

I don't know the legal position but surely the key question is how much does he owe in total? If he owes £500k to other debtors then your share of his asset will be pro rata i assume? (about 8% of £150k).

Can you put a charge of some sort on his house?

TBH if you have a solicitor i would follow his advice.

The OP clearly says they have a charge registered on the debtor's property, in the second sentence of their first post.

They go on to say in further posts that it is the only charge on the property, and the property is in the sole name of the debtor.

It does not matter how much money the debtor owes, or to who, if the OP has a first charge for £40k on the property, I don't see how the property can ever be sold without the OP being paid in full for the charge to be removed.

andyfromotley

pvt wrote: »

The OP clearly says they have a charge registered on the debtor's property, in the second sentence of their first post.

They go on to say in further posts that it is the only charge on the property, and the property is in the sole name of the debtor.

It does not matter how much money the debtor owes, or to who, if the OP has a first charge for £40k on the property, I don't see how the property can ever be sold without the OP being paid in full for the charge to be removed.

Thanks i had overlooked that in the OP:D Yeah crack on and get your money then in that case, i can't see what difference going bankrupt will make to this situation (although i'm interested to know why your solicitor felt this had to be done 'before' he went bankrupt?)

maximumme

pvt wrote: »

It seems pretty clear from the OP that the debtor is far from insolvent, so I would suggest it would be very difficult for them to go bankrupt.

Can a court refuse if someone tried to make themselves bankrupt? He is, as you say, far from insolvent. He owns properties he rents out, has a lease on a hotel/restaurant/bar which he runs, and just this week sold his own home making a £100,000 profit. (he moved to a larger property a year ago and took a while to sell his house).
I don't know the ins and outs of bankruptcy, but I would be surprised if a court would allow him to go bankrupt for the sole reason not to pay me the money he owes.

chanz4

why not escalate to a high court enforcement

maninthestreet

chanz4 wrote: »

why not escalate to a high court enforcement

pvt

maximumme wrote: »

Can a court refuse if someone tried to make themselves bankrupt? He is, as you say, far from insolvent. He owns properties he rents out, has a lease on a hotel/restaurant/bar which he runs, and just this week sold his own home making a £100,000 profit. (he moved to a larger property a year ago and took a while to sell his house).
I don't know the ins and outs of bankruptcy, but I would be surprised if a court would allow him to go bankrupt for the sole reason not to pay me the money he owes.

He can't become bankrupt if he is solvent. The only thing he can (legally) do is fritter away all his money until he is insolvent.

I am no expert on bankruptcy, but there are things a creditor can do to protect their position if their debtor looks like deliberately worsening their position with a view to becoming bankrupt, though the difficulty would be in the creditor demonstrating this is what the debtor intends to do.

Interestingly, a letter from the debtor's solicitor threatening that his apparently solvent client intends to bankrupt himself, might constitute quite strong proof of that intention.

Personally, I like Chanz's suggestion of High Court Enforcement. The Sheriff's will know how to petition for his bankruptcy, and by the time they're finished adding their fees his £10k solicitor's bill will be the least of his worries.

Pixie5740

tomtontom wrote: »

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.

The OP is the only person with a charge on the debtors property. The debtor is probably just blowing smoke.

maximumme

chanz4 wrote: »

why not escalate to a high court enforcement

Not sure what this would entail - I thought they would just act like bailiffs, seizing cars etc, or would they enforce bankruptcy themselves before he did it first?