Why has my BR been handed over to a Insolvency Practitioner??

Cobalt77

TakeAwayKing wrote: »

Apparently not to the appointed ip. Especially if it's grant t.

Err, but YOU are the only person who keeps going on about this. Both Fermi and Debt Doctor have posted in this thread, and neither of them have even mentioned it because it's totally irrelevant.

Whether a property is repossessed by a Court Bailiff or by "handing back the keys" (voluntary surrender), it's the same net effect. The lender will dispose of the property(i.e. the security) in order to repay their debt, and the mortgagor (i.e. the OP) has no influence or involvement in the sale process. So, if the lender decides to put the repossessed/surrendered property into an auction, there is nothing the mortgagor can do about it.

The OP has stated the lender sold the property for below the amount of the mortgage, and the negative equity was added to the BR. So, why would any mortgage lender deliberately sell a repossessed property for below the market value when this transaction would result in the lender actually losing money?

I think you are getting confused between repossession and asset disposal pre-BR here. If the OP had sold his property (or car etc) to someone else for (arguably) well below market value shortly before going BR, then the OR could consider this to be a suspect transaction and investigate it (as it could be considered a deliberate act which is detrimental to creditors). But this isn't the case here.

In fact, from the Insolvency Service's own regulations:

2. How is an IP appointed? An IP can be appointed as a result of a meeting of creditors (or contributories, in company matters) or by the Secretary of State on the application of the official receiver.

Link: https://www.insolvencydirect.bis.gov.uk/casehelpmanual/I/InsolvencyPractitioners/HandoverToIP.htm

In the vast majority of BR cases, once an IPA is agreed with the OR, the administration is transferred over to Clarke Willmott and that's the end of it.

But, in this instance, after the OR has completed all their enquiries and made their formal report to the creditors, one of these creditors feels they may get more money back if an IP is appointed instead.

This is presumably because Clarke Willmott have a rather relaxed approach of simply collecting and processing IPA monies, whereas an IP can choose to adopt a more "hands on" approach - for example by regularly and pro-actively contacting the BR to see if they can gently pressure them to pay more money into their IPA.

This is exactly why Fermi said "You do not allow yourself to be pressurised into paying more. You would have to agree to any increase." and DebtDoctor said "If you are presented with a revised unfair IPA then you should challenge it - and we can help you do that."

If the OR felt there was anything potentially "dodgy" going on, they would have carried out an investigation prior to making their formal report to creditors. So the IP is purely there as an Administrator, albeit probably more "active" than Clarke Willmott. That's all.

TakeAwayKing_2

Long post. Wow.

luvchocolate

Some times it takes a long post to get the point across, very well said Colbalt77.

Brandnewstart79

Hi all and thank you for your replies.

At the moment i am paying £370 towards my IPA but my circumstances have now changed where i'm travelling alot more miles to work etc.

My current job requires me to travel 180 miles round trip and i'm doing this 3 times a week. I'm in the forces and have been crash assigned to a billet which is out of my normal area so i have to do that mileage. I get a small allowance but unsure how much that will be as of yet as it has not gone onto my Pay Statement.

I also travel once a month to visit my family in South Wales from Plymouth so i have to factor that in and that is a 410 mile round trip and my wife and I travel upto Lancashire to see her family once a month (another round trip of 670 miles from Plymouth) so as you can read i spend most my time on the move right now.

Don't know what the IP will say about this but this is what i have to do right now so most of my wages go on fuel at the moment.

Woud the IP be ok with all this or will she try and give me other options?

Again thank you for all your help