Trustee and assets

CStar75

thehog said:

This is why a Trustee applies to court for a charging order and puts a land registry restriction on the property - to protect the asset. If they’ve done that then this stops the equity reverting and the 3 year rule no longer applies.

Hi, having just checked at Land Registry you are correct the Trustees have placed a K restriction on my husband's beneficial interest already so I now question their urgency in chasing payment as the 3 year rule is now irrelevant.

Minkym00

The three year rule is only relevant if there is no equity in the property. It gives the trustee time for the value of the house to increase in 3 years, otherwise it is revested. Given that there is equity, they don’t have to wait until three years is up, hence they are pushing now. 

CStar75

Hi, I have finally agreed a settlement with the trustees to buy my husband's beneficial interest in the property.  Prior to submitting the funds, I have asked the trustee to provide information as proof as we are looking then to annul the bankruptcy and the reply is.....the payment does not constitute the bankruptcy debts, costs and expenses being paid in full and is not therefore a ground for an annulment application to be made. Is this correct, does my husband have to sit out the remaining 3.5 years with the bankruptcy on the credit file? Also they have said no formal legal assignment of my husband's beneficial interest will be prepared and if this is something we wish to pursue we will be required to cover the associated legal costs for us and the Trustee. What does this actually mean please? Thanks so much.

Minkym00

If the value of the payment you are making is less than the total bankruptcy debt + fees (bearing in mind the fees are not just the OR’s fees but the trustee’s fees too, which are no doubt substantial) then, no, I’m afraid your husband cannot get his bankruptcy annulled.

There is no need for a formal deed of assignment. At the moment the trustee has placed a bankruptcy restriction at the Land Reg to register their claim on your husband’s share of the property. All they need to do is remove that restriction and the property is then registered at the Land Reg as belonging to you both again, unrestricted. If there is ever a query in the future then you can prove what’s happened with the trustee’s final report which they will provide when they release themselves as trustee. Don’t bother with anything formal, you’ll be spending money unnecessarily.

CStar75

I wonder if I can ask for your help again please.  I have paid the BR trustee for my husband's beneficial interest and they have put the following note in their confirmation letter....

"You have purchased the bankrupt's interest in the property and are now the sole beneficial owner of the property and we have no further interest". 

It's the 'sole' bit that's confusing me as my understanding is that it would be returned to my husband and we would return to us both owning the property. Thanks.

Minkym00

Effectively you’re buying it off the trustee. Unless your husband’s name is removed from the title then you will remain legal joint owners of the property as far as The Land Registry is concerned, it’s just that you will have paid for it.