buying council house previously bankrupt

Loretta

I think that this OP is wanting facts not opinions.

He went bankrupt for reasons we know nothing about and do not matter now. he says the council tax was covered in the bankruptcy. That matter is over and done with and quite seperate from his situation now.

If he has paid council tax that was due from the date of the bankruptcy and is up to date I think the magic words here are 'Right to Buy'. If he has a right to buy I think that council has to sell it to him, because no one else would have the right to buy this property if he is the tenant.

I think the council are trying it on asking for money that was covered by the bankruptcy. They may of course like most creditors be unaware of what the rules are.

This Op sounds like he is trying to get his life started again and good luck to him

wherediditallgo

I can understand the OP's position, but I can also understand the council's, especially if they have the view that someone went bankrupt owing them money, & now wants to receive a discount to buy the property from them. I can't find it now, but I'm sure I've read that the council can't be forced to sell the property even if you have the right to buy it - certainly this clause appears in all the RTB info I've seen: "You cannot buy your home if a court makes a possession order which states that you must leave your home or if you are an undischarged bankrupt, have a bankruptcy petition pending or you have made arrangements with creditors and you still owe them money. You can only purchase if the house or flat is a separate home and is your only home". As I suggested before, the OP needs to speak to the OR about this, because if the debt wasn't included in the bankruptcy for some reason (just because they put it on their Statement of Affairs doesn't automatically mean the OR believes it should be there & has allowed it to remain), or if the council has to get the money back another way (for instance, because they had already started legal proceedings before the bankruptcy & are now required to follow them through), it will clearly try to do so. Asking for advice in this forum on this subject is difficult, because some people disagree with bankruptcy or RTB, or both.

Maybe I'm missing something here, but the RTB discount is still available, albeit at a lesser rate than it was say 10 years ago. So, even if the OP is deemed to still have to pay back the money, it's more of a paper exercise than anything else, since it's in effect reducing the amount of discount they get, rather than saying that they've got to give them a cheque/cash for the amount the council think is due. I hope the OP does get this all clarified, as it would certainly be interesting to know the outcome.

thanku1

I work with licensed insolvency practitioner

You can no longer be chased for amount of council debt including on the bankruptcy petition

If they pursue this matter ask them to get n touch with the official receiver or you should contact the official receiver and ask him to advice you on this matter.
What I have told you is fact not hear say.
regards

Doozergirl

thanku1 wrote: »

I work with licensed insolvency practitioner

You can no longer be chased for amount of council debt including on the bankruptcy petition

If they pursue this matter ask them to get n touch with the official receiver or you should contact the official receiver and ask him to advice you on this matter.
What I have told you is fact not hear say.
regards

For fear of taking this thread full circle again, I think we've established that the OP cannot be chased for the outstanding debt because of the BR.

What we are all eager to know is the outcome of whether the council can refuse the OP the right to buy because of the previous debt. If you could state that specifically as fact, then that would be helpful.

My understanding is that the council are not saying 'you owe us, pay up or else' but are saying 'You have previously not paid us what we said you owed us; we are not chasing you for it nor are we asking you for it, but what happened has affect your claim under the right to buy. You are still more than welcome to be our tenant' and then, presumably 'If you WANT to pay us that money, then we will reconsider our decision to give you a discount on the purchase of your house'

lyndata

Since being made bankrupt I have never and never will be in that situation again. My point was that my rent/ct are up to date and have been since the bankruptcy. When I asked them if I was in any arrears they said no until I tried to buy the house im currently in. Then the matter of 8 years ago was brought up. I do appreciate everyones help and thank you all for taking the time to reply.

david29dpo

I for one would not do business with someone who owed me money unless of course they paid it first. Try offering the council tax and see what happens.