Equity in Property post bankruptcy

devon_guy

If I had about 3k equity in my property, would I be forced to sell to realise this amount? What costs does the OR take into account before deciding on how much equity there really is? Do they take selling costs etc into account?

debt_doctor

Hi,

The practice over recent years has been that if the bankrupts equity is worth less than £10k, a charging order would be placed on the property rather than forcing a sale.
The charge would have to be paid off when you sold the house. Beware that the charge will attract statutory interest at 8% - which soon adds up.
Can anyone raise a couple of grand to make an offer?

DD

devon_guy

Yes I read about the 8% charge today funnily enough. Talk about kicking someone when they're down! Imagine selling 5+ years after the charge was put on your property, you'd owe a lot of money again.

debt_doctor

Yes can soon add up.
If this is the family home of the bankrupt or bankrupts spouse / ex spouse then the OR has up to 3 years to deal with the property, otherwise there is no time limit to deal with it.
DD