Please Help

IF_Only_4

Well thanks all for your replys, just had another valuation this morning and this guy said to put it on the marketfor 119,000 would look at getting around 110,000 for it as prices around here are dropping and nobodys really buying at the mo. Did speak with my accountant yesterday and he reminded me that my parents had got a stake in the property which I had totally forgot about. I am not sure what to do now as I hadn't told the or about this. When I bought my buisness 6 yrs ago my parents lent me 15,000 pounds that i never did get round to paying them back. So 2004 my mother sent me a letter to say that they would except this out of the equity of the house which he has on file. What do I do now. help appreciated thanks. If Only:o

rog2

IF_Only wrote: »

When I bought my buisness 6 yrs ago my parents lent me 15,000 pounds that i never did get round to paying them back. So 2004 my mother sent me a letter to say that they would except this out of the equity of the house which he has on file. What do I do now. help appreciated thanks. If Only:o

It may be that your mum's letter could be accepted as her also having a 'Beneficial Interest' in the house, which would reduce your Beneficial Interest substantially.
On the other hand, the OR may see it as giving your mum (a creditor) preferential status over other creditors.
Property is a nightmare in Bankruptcy and you would be well advised to seek professional advice on this point.

IF_Only_4

Thanks whos best to turn to, have spoke to accountant but still unsure what to do. The letter was written in 2004, we are now in 2007 and didn't intend to go bankrupt and certainlt didn't want to. So because it was written in 2004 do you think that they would look at it giving her preferential treatment. (Thanks for your advice I take it on board and do understand where you are coming from) If only

rog2

IF_Only wrote: »

The letter was written in 2004, we are now in 2007 and didn't intend to go bankrupt and certainlt didn't want to. So because it was written in 2004 do you think that they would look at it giving her preferential treatment. (Thanks for your advice I take it on board and do understand where you are coming from) If only

Personally I don't think that the OR would consider this as giving your mum 'preferential creditor' status, but they do have powers that include going back up to six years and 'reversing' any 'sale' or 'agreement' that could be viewed as 'suspicious' and although they rarely do this, there are many inconsistencies between individual OR's and their interpretation of either their own powers or the Insolvency Service Guidelines/Manual.
I am surprised that your accountant was unable to advise - perhaps you could contact CAB, who may be able to reccomend a solicitor that gives a free initial interview.

IF_Only_4

Thanks he did suggest it, so Iam not really sure what to do. I think I may just submitt the letter and see what happens. Thanks anyway. If Only

Richard_S

IF_Only wrote: »

Well thanks all for your replys, just had another valuation this morning and this guy said to put it on the marketfor 119,000 would look at getting around 110,000 for it as prices around here are dropping and nobodys really buying at the mo. Did speak with my accountant yesterday and he reminded me that my parents had got a stake in the property which I had totally forgot about. I am not sure what to do now as I hadn't told the or about this. When I bought my buisness 6 yrs ago my parents lent me 15,000 pounds that i never did get round to paying them back. So 2004 my mother sent me a letter to say that they would except this out of the equity of the house which he has on file. What do I do now. help appreciated thanks. If Only:o

Hi If Only,

A solicitor specialising in insolvency is your best bet and depending on your earnings you may well qualify for legal aid. Insolvency Practitioners do offer free initial consultations but my only reservation with them is that at some point you're going to have to pay for their services. Well worth it of course, if they're able to help, but all too often it's throwing good money after bad.

As far as the money from your mother is concerned, I think there's very little chance of that being treated as having a B.I in the house. Property is one contract where the documentation has to be drawn up by solicitors and registered with the relevant authorities.

You should include her as a creditor but I fear she'll be an unsecured creditor, and that seldom results in any material returns.

Richard