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Insolvency (Scotland) & passing away
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confused_
Posts: 2 Newbie
Looking for a bit of help on my understanding on something....
My late mother was unfortunately made bankrupt due to unpaid council tax (around £5,000) back in September 2019. She was co-operating with the appointed Trustee who advised that they would not force a sale on the house due to her disabilities and all debts would be discharged after 12 months. Sadly she passed away in April 2020 (no will) prior to the discharge and we were informed that the Trustee would then look to recoup the debts from the sale of the property following my mother's passing.
We contacted a solicitor to deal with the estate and it was discovered that half of the property was under my fathers name however he had passed away over 10 years prior, therefore we had to arrange for confirmation to settle my mums estate and then apply for my dads estate to be moved into my mothers in order for us to arrange for the house to be sold (which would have been done regardless of the insolvency). This has all now taken place and we have received an updated statement from the Trustee advising they will be looking for approximately £30,000 from the house sale which I just cannot get my head round, given the initial debts were under £10k and they have added around £14k of their own fees on top.
From reading the citizens advice site, it states:
As far as I am aware, there has been no correspondence from the Trustee with our solicitor dealing with the estate that any of the above has taken place. I have requested an updated title deed and there is no note of their interest in the property anywhere within the documents, they have not applied for possession to allow a sale, obtained any valuations or anything else for that matter. Therefore presumably, come 3 years in September, the property will no longer be included within the bankruptcy and any funds from the sale will only be distributed between the beneficiaries?
I'm not sure that many, if any, will have had much experience with this but any help would be appreciated.
My late mother was unfortunately made bankrupt due to unpaid council tax (around £5,000) back in September 2019. She was co-operating with the appointed Trustee who advised that they would not force a sale on the house due to her disabilities and all debts would be discharged after 12 months. Sadly she passed away in April 2020 (no will) prior to the discharge and we were informed that the Trustee would then look to recoup the debts from the sale of the property following my mother's passing.
We contacted a solicitor to deal with the estate and it was discovered that half of the property was under my fathers name however he had passed away over 10 years prior, therefore we had to arrange for confirmation to settle my mums estate and then apply for my dads estate to be moved into my mothers in order for us to arrange for the house to be sold (which would have been done regardless of the insolvency). This has all now taken place and we have received an updated statement from the Trustee advising they will be looking for approximately £30,000 from the house sale which I just cannot get my head round, given the initial debts were under £10k and they have added around £14k of their own fees on top.
From reading the citizens advice site, it states:
5. Check what happens if your home hasn't been sold after 3 years
Your beneficial interest in your home will become yours again if the official receiver hasn't done any of the following within 3 years from the date your bankruptcy order was made:
- sold your beneficial interest to someone such as your partner, friend or family member
- applied to the court for an order that you and anyone else living in your home have to leave
- applied to the court for a charging order
- come to an agreement that you will pay them the amount of your beneficial interest
As far as I am aware, there has been no correspondence from the Trustee with our solicitor dealing with the estate that any of the above has taken place. I have requested an updated title deed and there is no note of their interest in the property anywhere within the documents, they have not applied for possession to allow a sale, obtained any valuations or anything else for that matter. Therefore presumably, come 3 years in September, the property will no longer be included within the bankruptcy and any funds from the sale will only be distributed between the beneficiaries?
I'm not sure that many, if any, will have had much experience with this but any help would be appreciated.
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Comments
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Scottish law is very different to the laws south of the border, I would say you need legal advice specifically on Scottish law here, National Debtline (Scotland) may be able to advise you better.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter3
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