Something's Gone Wrong- Help

Val17

Hi Val


I'm afraid it's all too easy for trustee fees to mushroom and sometimes eclipse the level of the debts themselves in a bankruptcy, as effectively they are charging for every minute of their time and anything they accomplish. The following guide goes into great detail about how such fees are determined and in what circumstances they can be challenged. If these fees were so inflated as to justify a challenge, however, chances are that your creditors would already have taken this step.

Dennis
@natdebtline

Hi, thanks for the information, so if i get the meaning of that document the upshot is this, as long as the creditors get their money the trustee's can and will charge what ever they like and wont be challenged over it. If we challenge the charges then it's likely to fail (who'll listen to us).

we ask all this, because if the Trustee's do intend to get a Sell Order for the house (which is looking very likely) my Father in Law has offered to release some of his equity in his house and clear the debt. But the most he can release is £20k maybe £25k, which is enough for the money we owe but not now the inflated charges.

So our question is, if we offered that would the Trustee's accept or would they want to pursue the house and if they pursue the house would the judge look favourable towards us or the Trustee's knowing we've offered this sum ?

As always many thanks.

standalone

I guess the reality here is the breakdown of costs you have posted above are going to have to be paid by someone, the trustee and their solicitor would not have taken on the case before asking their number one question which is who is going to pay us, and by that they mean pay us in full.
The OR office or secretary of state will not take money out of their budget to pay the trustee and their solicitors costs when there is positive equity in a property which can be realised to pay the costs.

Which brings us back to your question, what would they except as settlement regarding their fee. I think more likely than not they will not move on their fee as there is no incentive for them to do so, but that said, NOW is very much the time to ask that question before they do more work on your case and rack up more costs.

As regards the Judge question you ask, a judge is only going to be involved if a hearing is listed to go before the judge by either the trustee or your own solicitor. This could of course be done by either party and would of course involve more costs. The Judge is not likely to set aside the fees charged by the parties in this case as they would be seen as legitimate costs. I would think the Judges take the view, we are where we are, costs have been incurred and creditors what paid.

I think from day one in your case you have been in a lions den without really realising it. I think your best plan of action would be to push to see if it is possible to get a figure from them as a final settlement and try and see if it is possible to rise the money.

Last point, I would not be employing the services of the solicitor you say you have had a chat with about this. He said to you that it was unusual that the Trustee did not deal with the property within the first year and they have left it very late in the BR to get a Sale Order.
That is simply not the case, and shows bankruptcy is a field he has little expertise in.

Val17

Update: Thanks to some of the advise posted within and on this forum we contacted our Trustees and asked our questions directly to themselves, then we phoned our OR. After a long conversation with both parties it became apparent that several things have indeed gone wrong, although no fault was agreed on the trustees part or on the part of the OR. As a side note, after our heated conversation with the OR we can no longer speak to the person who was handling our case, we now only get a "supervisor" who directs us only to the Trustees.

The upshot of our conversation is that we are now negotiating with our Trustees to get this final bill down to a level where we can pay it (20-25k mark) and they are helping in this. We need now to make an official complaint about our OR as it's been made clear to us that we are in this situation mostly because what the OR told us in our interview, although the Trustee's are not completely blameless and we will also be making a complaint about their services. We don't expect much will come from either complaint, but you have to go through the channels as they say.

So, many thanks to all on this forum, and we will of course post again when we finally have an outcome.

debt_doctor

Hi,
Whilst the initial part of your bankruptcy was rather strange to say the least, the latter part is 'standard stuff' I'm afraid.
Your last post has at least brought the two sides together (OR and IP). I think you have had a very naïve, poorly trained level 1 examiner (not actually the OR) initially handling your case. They have now 'withdrawn themselves' (speak to the IP only) because they messed up big style in what they initially told you. I 'll take a guess that you have none of the earlier stuff confirmed in writing?


The facts are this:
It's not that unusual to be made bankrupt for the sum of money you describe.


It may have been a good choice to have gone for a 'fast track IVA' early on, when they apparently offered you the choice between an IVA or an IPA - although to offer such a 'choice' is damned bizarre! An IVA would have saved the property if it had run it's course.


The 'OR' had no right to inform you that your property was safe as it absolutely was not. It is perfectly normal for the property sale process to begin after a year and they have up to 3 years to deal with the property.


I'm glad they didn't set up an IPA with you - but they have been negligent in not doing so.


The IP fees are of no surprise and believe me they will balloon further unless you act very fast. You are correct in thinking that there is no real, reliable mechanism to challenge IP fees.


I think your best way forward is the choice you seem to have already made, settle with the IP - quickly.


You also need to make a formal complaint against the Insolvency Service.


DD