Insolvency practitioner

Barbaraswift

Hi,

Is anyone able to offer some advice or guidance.

My now husband was made bankrupt by HMRC is 2014 for a debt of £35k.

Stupidly he did not cooperate with his OR and just assumed they would put a charge on our property.

We haven’t heard anything of his OR for nearly five years.

We now reside in Australia and have done since 2014.

We rent our house out in the UK and the tenant received a letter last week from an insolvency practitioner to say that they are taking control of my husband assets, including the house.

I don’t know if they know that the house is joint owned.

We don’t really have any assets in Australia as we rent - so it’ll just be the car and any excess salary.

I’m beside myself with worry.

He will contact the IP on Monday to discuss.

Do anyone have any idea of this process?

Sorry for the long post and TIA

TheGardener

He needs to talk to the OR fast and cooperate fully.
Is the house in joint names with you (or anyone else for that matter)
Are the mortgage payments up to date?
Who is paying the mortgage (if there is one)?
How much equity is in the house?

Check the IS website to see if his discharge was suspended due to non-cooperation

If you are a joint owner then the OR can not take your share of the house or your share of any of the rental income. However, you need to work on this fast.

Barbaraswift

The house is joint owned by both of us - equal shares.

His name is still on the insolvency register so he hasn’t been discharged.

The mortgage payments are up to date - we’ve never missed one in 13 years.

We’ve never really heard anything off the OR since first initial contact back in 2014.

Our tenant received a letter addressed to her stating that my husband has no control over the house and for the rent to be paid directly to them from now on.

They also asked for an up to date rental agreement and the banking details where the rent is paid - which we can provide.

The rent is paid into my uk bank account, then the mortgage is paid.

This is why I think they are not aware that it’s joint owned.

Stressed out!

TheGardener

This is out of my field of experience and I suggest you get professional advice. Not only about the property but about being in a different country.
You will of course need to prove you are part owner which is easy enough if you are on the title deeds. As a basic calculation you own 50% of the equity in the house and the rent income (including past rental income)If the property is sold you should get your half back. How they work out the value of the rental income and who that belongs to is another matter outside my experience.

Flyright

The insolvency practitioner is likely to be able to collect your husband's share of the rent as an asset in the bankruptcy.

maxmycardagain

G'day Skippy!

antrobus

Barbaraswift wrote: »

....
Our tenant received a letter addressed to her stating that my husband has no control over the house and for the rent to be paid directly to them from now on.

Well, that got your attention didn't it? After 4+ years of non-cooperation with the OR.:)

The OR is going to want the property sold to realise your husband's share of the equity, unless you have the money to buy him out,

They are also likely to want an accounting of the rental income since 2014, in order to work out how much belongs to them. Since the rent was paid into your UK bank account, if they are due anything, they will go after you for that money.

TheGardener

antrobus wrote: »

... Since the rent was paid into your UK bank account, if they are due anything, they will go after you for that money.

I suspect it will be a calculation of how much of the last 5 years of rent was his and how much of that was paid into the mortgage that calculates anything over the basic 50/50 split is due to the creditors. The OR/IP may reduce your share of the equity OP, although 'going after' is a bit strong at this point.

The first thing that needs to be established is how much is yours - and how much is his/the IP's

You will probably need professional assistance with this. I'm not sure if the free debt advice services can support you if you are not UK resident but I'd start by asking them. StepChange/National Debtline/Citizens Advice.

Was it a personal BR or a business one? If the later then also try business debtline.

antrobus

TheGardener wrote: »

I suspect it will be a calculation of how much of the last 5 years of rent was his and how much of that was paid into the mortgage that calculates anything over the basic 50/50 split is due to the creditors. The OR/IP may reduce your share of the equity OP, although 'going after' is a bit strong at this point.

That's exactly what I meant by 'go after', the OR would expect to realise that amount from the OP's equity share.

silvercar

How much equity is in the property? Enough that your husband's half share could clear his bankruptcy debt?

I wouldn't worry about your car in Australia, I can't see the OR turning up and demanding the keys!

If you have a repayment mortgage, you will need to calculate ho much of the repayments since 2014 have increased the equity in the property and make sure your share of that isn't double counted against you.

An initial estimate of the equity would be useful - use zoopla as a starting point.

maxmycardagain

https://www.youtube.com/watch?v=OiJJSY5uBvQ