Forced Sequestration

Hi
I have a cite for a forced sequestration on the 13th March next Friday. I have been to CAB and the local advice shop who have all been unhelpful. This is for council tax for £6.5k. I had an agreed plan which lapsed, berried my head in the sand. This has resulted in this court date.
I am a home owner(shared equity) jointly with my partner. We have very little if any equity in the house. The house has recently been fully adapted for my severely disabled son. I have been told from everyone I have spoken to that the house will sold no matter what. I also have a young daughter as well. I have other debts adding up to maybe £15k. Does anybody have any light on where I stand with the house. I have been in touch with stepchange and am trying to work with them to get some kind of debt management plan setup. My plan would be to go to court and let the judge know this and try and geg a continuation. If I went with the sequestration is there a chance the house would be safe with what I've said above.

Much appreciate any help with this. 

Thanks in advance. 

Comments

  • mwarby
    mwarby Posts: 2,048
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    Despite living in Scotland I'm not nearly as familiar with the bankruptcy process here. I do know it's run by the Account In Bankruptcy (AIB) rather than the insolvency service. They have a debtors right leflet here https://www.aib.gov.uk/sites/default/files/publications/Resource/Doc/4/0000524.PDF which may help, page 8 deals with property

  • mwarby said:
    Despite living in Scotland I'm not nearly as familiar with the bankruptcy process here. I do know it's run by the Account In Bankruptcy (AIB) rather than the insolvency service. They have a debtors right leflet here
    Thanks for the info @mwarby . I've already had a read through that today. I think my situation is a bit more complicated than what it gives you info on. Trying to find someone in Scotland that can deal with this before Friday is turning into a nightmare. I've spent to long with organisations that can't help. The house is fully adapted for my son. The council will not be able to supply a house that would be suitable for him. The adaption were done through a government scheme also. There will be no private rental that would fit his needs either. Hoists/closomat toilet/bedroom downstairs etc etc. Basically I think the outlay the trust would have to do to sell the house outweighs the money they would make. 
  • mwarby
    mwarby Posts: 2,048
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    I've found the equivalent (I think) to the insolvency manual here https://www.aib.gov.uk/sites/default/files/trustee_notes_for_guidance_-_nov_16_-_updated_feb_20.pdf  page 113 onwards deals with the home. I'll post if I see anything of particular interest, but not so sure I understand this nearly well enough

  • mwarby
    mwarby Posts: 2,048
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    It looks like they try and take action in the first year, although they have 3 years (and can extend this). The manual suggests the trustee should not wait in the nope of the value increasing, and there is the option to buy out the interest.

    You mention the adaptations for your son. As far as I can tell this wouldn't have much impact on the bankruptcy itself, it would be for you to find somewhere suitable and the rent would be taken into consideration when setting DCO(like an IPA). The main consideration the trustee would have is wether they could market and sell the property for more than the loans secured against it. I hope I'm wrong here

    I think if you could get the debt below £3k you could avoid the bankruptcy being granted. Have you looked at any charity which represents your sons disability ? Have you tried appealing to council, if you can setup a payment plan and stick to it, combined with your housing difficult maybe you can get another chance ?
  • mwarby
    mwarby Posts: 2,048
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    I presume the advice shop and CAB were unable to find an alternative debt solution like DAS or a trust deed ? If you could arrange something else its possible(not certain) you could get a six week moratorium (breathing space to set up a debt solution). If debt advice has suggested these wouldn't work, the moratorium may not do any good (I think you'd have to explain to court on Friday what you hoped to achieve by a six week delay)
  • Galloglass
    Galloglass Posts: 1,284
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    edited 8 March 2020 at 6:31AM
    It may be an obvious question but why did the Council Tax bill get to £6.5K?  It is not unusual to see CT plus other debts together but the ratio - £6.5K to £15K is unusual.

    Have you been paying off some creditors in preference to CT? 
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